Impact of Olympics on the Cost of Renting in London
The second quarter of 2012 is seeing an increase in the overall cost of renting an apartment in London. Since the 2012 Olympics are being held in the U.K. and the city of London is the main venue, this has contributed quite a lot to this hike in rent. We can also see that a combination of strong demand for rental accommodation, and the corresponding availability of high standard rentals in central London, has pushed the rental costs by almost 6% during the second quarter.
It has been a typical trend that rental prices usually increase during international events like Olympics, but this time the monthly rental prices in London have risen for three months in a row with an average of £1047. Not only in the capital has the cost of renting pumped up but also across other areas of the country. In fact, the demand for apartments on rent in London, is so high that in June, this pushed the average monthly rent in England and Wales to almost £718, only £2 short of the all-time high of £720 recorded last October in the regions. It is even speculated that almost 60 per cent of UK landlords are planning to expand their property portfolio.
If you are still wondering why we are seeing such a trend, then here are a few reasons that should hopefully shed some light- Firstly, the Olympics is a big reason to attract tenants in well established and tourism focused areas like Hyde Park, Canary Wharf, Kensington, etc. People want to be in areas which are not only in close proximity to the Olympics Village, but also places which offer them a package of entertainment options. The other reasons partly contributing to this rise is a healthier jobs market in the City, which is currently up by nearly 15%. It is should be noted that this has also resulted in an 8% leap in tenants flowing in from the financial sector. So, if you are one of those planning to move to the capital and rent a contemporary apartment, be prepared for the cost of renting there.
