New figures indicate that rentals in London have outstripped sales for the first time since the 1930s, and there are a number of factors involved.
There is an abundance of rental property in London. Many Hong Kong investors bought property earlier this year, before the changes to stamp duty increased the prices. Equally, when prices fell following the Brexit vote, property became cheaper for overseas buyers.
According to the Office of National Statistics, young professionals make up the largest proportion of London’s populations, but many are being priced out of the property sales market and turning to rentals instead. Workers between the ages of twenty and thirty are typically transient, trying different areas before committing to buying a house, or saving to buy property in outer London when they decide to “settle down.”
Now, some Hong Kong investors are concerned that companies are withdrawing from the UK after the Brexit vote, and this will have an impact on the numbers of people seeking rentals in London. In fact, this situation has not come to pass, as enough international companies have decided to retain their UK offices. Ai Li Khaw, Director at the Hong Kong office explains. “Some companies have been identified by the UK government as vital for the economy, and deals have been done to ensure they continue their important presence in London,” she says. “This is good news for both for investors and for the city itself.”
International companies’ continued presence in London generates an additional need for rental accommodation, with many investors reaping the benefits. At Henry Wiltshire, the Canary Wharf team provide a valuable tenant finding service, working with Docklands businesses to house staff and provide suitable accommodation within an easy radius of the office. Rebecca Heslam, Lettings Manager at the Canary Wharf office, has this to say: “We’re delighted to be part of one of London’s most important banking districts. By building great connections with businesses, we’ve been able to offer an outstanding service to landlords and Docklands residents alike.”
Whether you’re looking for buy-to-let property in London or you’re seeking rented accommodation in the UK capital, Henry Wiltshire can help. Contact Ai Li and her team on +852 9730 9697, or click here to read more about the London rental market.
