Corporate relocation numbers remain high, despite ongoing Brexit negotiations
Mon 10 Sep 2018
Whilst the government struggles towards a Brexit deal, any rumours of its effect on the London rental market have certainly been squashed. Indeed, our Corporate and Relocation Services department have reported their highest Q3 activity in three years. Companies are continuing to relocate both high-profile and younger employees to London, particularly those in professional services such as finance and accountancy, as well as those in the educational sector.
The season between May and October is traditionally the busiest period in the lettings industry, due to a high influx of movers either coming to the end of previous tenancies or as graduates relocating from outside of the capital. Demand is therefore high, and properties let quickly, often for above asking price. In this market, corporate tenants and their healthy budgets are extremely attractive to landlords.
We continue to see a trend where these tenants are searching for property, with west London remaining the most popular location and accounting for 21% of enquiries. Home to several business districts including Hammersmith and Chiswick Park, west London is the ideal spot for corporate tenants working for companies whose headquarters are based there, such as L’Oréal, Disney and Paramount. In addition, Imperial College London recently opened their White City campus, creating 100s of jobs in the area. This has driven a large number of both student and professional applicants; we recently secured a tenancy for a professor at the college who is based in London on weekdays.
Similarly, we have seen strong numbers of applicants searching in north and east London, particularly Shoreditch and Islington, with these areas attracting 41% of enquiries in Q3. Primarily from the technology and finance sectors, tenants are typically looking for two-bedroom apartments close to their office. Whilst we’ve experienced an increase in companies relocating young professionals, we continue to see activity from corporate families moving to London. These tenants are often searching in traditionally family-focused areas, such as Balham, Battersea, Clapham, Notting Hill and Little Venice.
Looking to central London, high levels of activity are being reported and we have agreed a number of tenancies for corporate clients relocating with families to this area. These applicants often boast healthy budgets of around £800 per week; we recently secured a tenancy at this price for a high-profile employee from a leading pharmaceutical company.
As we go into Q4, we expect to see the volume of corporate enquiries remain high across London. Tenants relocating to London want to be settled before Christmas, and as such October and November are an excellent time to put your property on the market. If you’re thinking of letting your property, please do get in touch to book your complimentary, no-obligation valuation.
Why are corporate tenants desirable?
With budgets ranging from £350 to over £3,000 per week, corporate applicants are the ideal tenants for several reasons:
- Tenants are often in senior positions due to the cost of relocation, so consequently they tend to work longer hours. This means less time in the property and therefore minimal wear and tear
- The cost of relocation is high; companies therefore want their corporate tenants to rent long term to save future costs, meaning tenancy length is often at least two years
- Corporate tenants’ rent is paid by their company, meaning it is always paid in full and on time
Our Corporate and Relocation Services Department, the largest of its kind in London, works with over 600 organisations across varying sectors, including finance, entertainment and technology, as well as hundreds of relocation agents. Our department helps match hundreds of corporate tenants with their perfect properties, providing one central point of contact for tenants and landlords alike. For more information on our Corporate and Relocation Services department, please do get in touch.