Covid19 had profound effects on the London market – 700,000 foreign-born residents left. How many will return? Rentals caught a cold. Higher-end newbuilds saw rent decreases of 30%+ as demand stagnated.
But let’s zoom out and see some positives:
In the latest 2022 QS University rankings, Imperial ranked 7th and UCL 8th. So, despite Covid, London still attracts global students. 25% of total Venture Capital raised in Europe in 2020 went to tech start-ups founded in London. Plus, London is still building hundreds of skyscrapers.
What’s the long-term outlook?
Lockdowns meant homes were used heavily. Property maintenance became critical, in-demand and poorly serviced. In a market of decreasing rents and increased property supply, landlords realised that addressing maintenance quickly, was crucial in retaining tenants.
Self-managing became the norm, with 65% of landlords taking an active role. Tenant demands have also shifted. Increased home working means people expect fast broadband. More living room space and space outdoors has also become a priority.
Tenants now expect a lot from landlords. Those that can deliver, who have experience and can leverage the new tools in property management to streamline their offering, will secure the best tenants and the highest rents.