LONDON'S LETTINGS MARKET BENEFITS

LONDON’S LETTINGS MARKET BENEFITS FROM INCREASE IN CORPORATE SHARING

London residential lettings agents Hurford Salvi Carr, reports that corporate sharing in London’s lettings market now accounts for 15% of the sector, and this is set to rise in 2007 with the continuation of rising house prices and high employment growth.

Hurford Salvi Carr’s found that the majority of corporate sharers are young professionals aged between 20 to 30 years old, who favour the City and Docklands, Limehouse areas.

Corporate sharing is a relatively hidden market that has become more popular over the last few years as young professionals are choosing to live together. Hurford Salvi Carr reports that tenants choosing to corporate share tend to be new to London or have recently changed jobs.

Corporate sharers typically rent two bedroom, two bathroom properties and prefer upgraded facilities such as concierge services or gymnasiums. On average these rentals range from £350 to £500 per week in the Docklands, and £400 to £600 per week in the City, West End and Marylebone property.

In terms of lease agreements, 75% are medium term one-year lets, of which half have a duration of two or more years. The remaining 25% comprise minimum six months. Higher rates can be achieved from corporate clients, with an 'employee' tenant staying for typically up to three years. Corporate sharers tend to lead busy lifestyles and opt to rent properties through lettings services rather than having to negotiate with independent landlords. Lettings agents are more proficient in the preparation of tenancy agreements and are also able to offer tenants expert advice on new legislation affecting their tenancies including the soon to be introduced Tenancy Deposit Scheme.

The Tenancy Deposit Scheme, which comes into force on April 6, will ensure deposits taken by landlords on assured shorthold tenancies are placed into a tenancy protection scheme within 14 days of payment. The scheme has been introduced to enforce good practice in deposit handling for both tenants and landlords. The Scheme also ensures clear agreements are in place on a property’s condition at the end of a tenancy. Some major companies will take a long-term lease on a property in which to house their employees. In the event that an employee returns home, as the company retains control over the property, they are able to quickly house any employee replacement. However, there remains a large proportion of corporate tenants who rent properties in their own name, with their employer paying their rent directly.

Buy-to-let investors favour corporate sharers, as they are mostly graduates in professional roles earning a high or a steady income and in most cases are willing to pay a higher rent. Their lifestyle means they eat out more, work long hours and employ cleaners.

For information on lettings opportunities throughout the City, Canary Wharf and East London contact Kari Trajer at the Hurford Salvi Carr, city office on 020 7490 1122