Investing in the City Fringes
The City Fringes of London are made up of a number of areas including; Clerkenwell, Shoreditch, Spitalfields, Whitechapel, Shadwell, Wapping, Hoxton and Bethnal Green. And they are fast becoming very popular for investors and Luke Mellor, Lettings Vauler for our West End Lettings Office explains.
Due to the number of new developments which are being built in these areas which provides quick and easy access to the City of London, which makes the apartments in these areas very desirable for corporate relocations, because many of the major corporations who are based in the City of London will often relocate members of staff to London. They will look for rental accommodation close to the office which the company will usually cover the rent for the employee as part of their relocation package which provides landlords with rental security for the duration of the tenancy.
The sort of companies based in the City Fringes is: CBS Interactive, Comparethemarket.com, Opentable, Amazon, Bloomberg, Expedia, Uber, ING Bank, Deloitte, Facebook and Google, plus a number of other tech companies.
The areas surrounding the City have always been extremely popular with city workers for many reasons including; the shorter daily commute and also the fact that they will be living right in the heart of London. These tenants are typically professionals working in the following industries: Banking, Law, Advertising, or Finance.
Again, the quality of tenant is very high, they are normally established in their job and you may find that the rent is paid in advance to give the landlord extra security. Some City workers use the property as a pied-de-terre or a London base Monday to Friday and will travel out of London at the weekends to visit their families or to get away from the hustle and bustle of London so there is far less wear and tear on the property.
With a number of outstanding universities in London you can expect a large number of wealthy overseas students who will be looking for accommodation in August and September, ahead of the start of the academic year.
Whilst Students will not be every landlord’s ideal tenants but there are advantages such as they will normally pay the term of the tenancy upfront giving the landlord security financially.
Increase in rental prices
With the cost of living in London becoming ever more expensive, a number of tenants are now avoiding the more established expensive areas of London to rent in and choosing a short commute to work via public transport than living on the doorstep of the office and paying a higher value rent in one of London’s more ‘sought after’ postcodes. In addition to the increase in rental prices, the sales prices have also increased and risen by 62% since 2008. With the City Fringes becoming more and more desirable, and I can only assume the prices will increase further for rentals and sales.
Low void period between tenancies:
With the City Fringes becoming more popular with each year that passes we have found that the void period between tenancies has decreased. On average in 2016, the average void period was 18 days between tenancies.
With more and more companies moving into the area (including Amazon in 2017) I feel this will improve the average void period furthermore.
If you would like to find out more information surrounding our lettings services, please do not hesitate in contact me.