Olympics landlords still unstuck, says agent
An Olympics legacy of their own making has left London landlords with empty properties and lower rents.
According to agent Chesterton Humberts, ‘numerous’ landlords got rid of existing tenants, hoping to cash in on Olympics demand.
But this never materialised and properties that stayed empty are now coming down in price.
Chesterton Humberts says that in the third quarter, stock levels are up 57% on the second quarter, so tenants can take their pick of properties.
The firm says rents are ‘subdued’ as a result and landlords are having to be flexible with their asking prices and terms.
Chesterton Humberts also believes that the private rental market was much more affected by the Olympics than was previously believed, with little movement before and during the Games. It says this changed in the third quarter, with tenant registrations up 26.7% and agreed tenancies up by 33.6%.
However, tenants continue to have the upper hand.
Nick Barnes, head of research, said: “The balance of power in the prime London lettings market has shifted subtly in favour of tenants since the second quarter.
“The Olympics factor has impacted on the market, although not in the way that was anticipated. Instead of boosting demand it had the opposite effect and contributed to the increase in supply as more owners unsuccessfully marketed their properties.”