International activity in London’s rental market is on the increase according to new research from Hamptons International
More than half of tenants (56%) in London over the last 12 months were from abroad
- The proportion of international renters increased significantly to 78 per cent in Prime Central London in the last 12 months
- Western Europeans are the most common international tenant in both London and the South East
The increase in activity in the London rental market is being driven by international tenants, according to new research from Hamptons International. So far this year, there has been a 10 per cent increase in the number of properties let in the London property market, with the number of international tenants increasing by 30 per cent between 2012 and 2013*. During the same period, the number of UK tenants remained unchanged across London.
Analysing data to understand the scale of international demand for rental properties in London, Hamptons International has calculated that 56 per cent of lets in the past 12 months were to tenants with non-British passports. Demand has been driven by Western Europeans (24%), North Americans (8%), Asians (7%) and Eastern Europeans (6%).
In the most expensive markets across Prime Central London, where typical rents for three bedroom properties start from £1,000 per week, the proportion of international tenants increased further to 78 per cent with specific areas appealing to different nationalities for various reasons including history and schooling - the French alone make up 16 per cent in Prime Central London tenants – and Americans 13 per cent.
Chelsea, Kensington and Knightsbridge have the higher proportions of Western Europeans than any other London area, driven primarily by the French and Italians. The Lycée Francais Charles de Gaulle in Kensington is particularly attractive for French families today.
St John’s Wood, on the outskirts of Prime Central London is notable for its large number of American tenants, who make up 30 per cent of international tenants in the area. This part of London has a thriving American community which is centered around the American School and the American Ambassador’s residence, Winfield House, is also close by.
Johnny Morris, Head of Research at Hamptons International, commented on the findings: “International tenants have been central to lettings market growth across London and are particularly prevalent in Central London.
“Those worried about the performance of the top segment of the rental market as sales pick up should take note; the community of international skilled migrants looking for premium, short to medium term rental property in the Capital is only set to grow as the economy improves.
“Demand from this group will likely make up for any established UK renters taking advantage of increased mortgage availability to move across from renting to home ownership.”
*According to Hamptons International’s Lettings data
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