With over 50% of Londoners already renting and a 14% increase predicted between 2018 and 2022 (Dataloft, London Market Report), London’s rental market is as buoyant as ever. Each year over 240,000 people migrate to London, many of which are corporate tenants relocating with work. Whilst the desired location for these employees varies, we’ve seen a growth in the popularity of north and east London in recent months.
This area of London has seen a huge rejuvenation in recent years and east London is now home to over 3,000 tech companies; Old Street junction is better known as ‘Silicon Roundabout’ these days. In Q3 this year, 40% of corporate enquiries were seeking accommodation in north or east London. These tenants are attracted to the area due to its proximity to their places of work, often in the City and Shoreditch, as well as the good schools, green open spaces and countless amenities, particularly in Islington.
Islington and Shoreditch have seen a definite increase in the number of young professionals being relocated by companies; we’re seeing more enquiries for one and two-bedroom apartments, with primary requirements being the proximity to their offices. Indeed, we recently secured a tenancy on a two-bedroom apartment in Islington for a corporate client from a multinational technology company, based in King’s Cross. At the same time, family relocation enquiries remain high, particularly in Islington where beautiful townhouses are extremely sought-after. Due to less stock on the market, corporate tenants are renting their properties for longer, with the average tenancy length now 29 months.
The popularity for corporate tenants in this area is being spurred on by the flurry of new developments offering luxury living in excellent locations. Our New Homes department is currently marketing apartments for sale in schemes across this area, including Arlington Lofts in Camden, Remix Helix in Harlesden and Hoxton Press in Hoxton, and they are particularly attractive to property investors due to the high demand from corporate tenants.
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.
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