There is hope and optimism on the horizon as new tenancies have been on the rise in Central London signalling that the allure to living in Central London is back. This has mostly been prominent in the 18-39 age groups, suggesting that young professionals are wanting to be based in the heart of the city and this has been due to various reasons.

New research from Demos, commissioned by Legal & General, maps people’s satisfaction with their local areas across the country and according to their findings, central locations in London rate the highest on the Index suggesting that city dwellers are increasingly happy to be based in Central London.

Here’s why!

More Affordable Rental Prices

Firstly, the pandemic has resulted in rental prices being reduced a fair amount and becoming more affordable to those who were previously priced out and having to seek areas slightly further out. Central locations just were not within their budgets prior!

Last year we saw a trend of young professionals moving out of London due to wanting more space or to move back in with family to save costs or to be able to work in a quieter environment, but now we are definitely seeing a resurgence back to the city.

In addition, those that previously flat shared and struggled from the effects of everyone being stuck working from home in the same environment are placing more value on getting their own space, which has led to an increase in demand for one bedroom flats in particular. 

According to LonRes, average rents in prime central London in the three months to February were 18 per cent lower than the same period a year earlier, being a primary draw for more city dwellers to take up occupancy.

Longer Tenancy Agreements

As landlords are keen to have security over rental income, tenants have been able to negotiate longer-term tenancies, which give them protection in case rents rise again when their tenancy is up for renewal. 

According to JLL,  in the 12 months to February 2021, there was a 15 per cent year-on-year increase in the number of renters agreeing to a tenancy of more than 12 months.

 Access to outdoor space

The pandemic has led to a lot of young professionals placing more value on space and so there has been a demand for larger properties with a garden or extra room to be able to separate out their home/work environment better, in the likelihood that there is likely to be a hybrid working culture moving forward, with a percentage of time continuing to be spent working from home. These were previously un-affordable but thanks to plummeting rental prices, more and more people are able to negotiate a deal.

Shorter commutes

With the appeal of using public transport for long distances still quite low, there has been a rise in demand for properties more centrally located so that the journey to workplaces and also the social aspect of restaurants and bars are more accessible by foot or shorter commutes.

Overseas University Students

A trend we are forecasting is that there may be a demand for central properties from overseas students keen to live in their own accommodation rather than in crowded or shared student accommodation.

They usually come from more affluent backgrounds and are able to afford the central London rates.

Negotiations on existing properties

When tenancy agreements are coming up for renewal we are also seeing lots of negotiations leading to a 15% decrease in rent in some cases where landlords are keen to retain tenants rather than go months with an empty property whilst they search for a new tenant. 

It is encouraging to see that the lure of the city is back and with the roadmap and increased vaccine rollout in place, the trend will only continue to increase.

If you are looking to rent in Central London, we have some wonderful properties available in Clapham, Westbourne Grove, and a superb 2 double bedroom apartment in Kensington with an outdoor space.

If you are a property investor keen to make the most of this upward trend by investing in a buy to let property in the heart of London, we would be thrilled to help source you the ideal property.

Interested in finding out more? Call us direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.

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