This article is provided by Winkworth, specialists in selling prime residential property and London lettings for the past 175 years.
As 2012 approaches and the capital prepares for the biggest sporting event of its history – well, since 1948 at least, the population remains divided on the subject of rental property and the Olympics – make a mint? Or suffer from inflated prices?
The event will attract not just tourists but also athletes, trainers and the international press set, all of whom will be looking for comfortable accommodation within easy access of the Olympic Village in Stratford. Industry insiders suggest that homeowners should be able to command up to £2,000 a week for a London letting – with the event spanning 16 days, from 27 July through to 12 August, the total could average out at £4,500. Not bad, for a two week hiatus.
The downside of the price hikes are however, the impact that they are having on regular city residents – with household expenses on the rise, plus an increase in VAT, the amount of disposable income is being squeezed from all angles. Regular rentals, especially on properties located in neighbourhoods close to the Olympic investment and development are experiencing a price peak – with both rental and purchase prices at an all time high in areas such as Newham.
Those people who are unable or unwilling to vacate the city during the Olympic spectacle are seeing rental rises on ordinary property, or even temporary eviction notices so that landlords can rent over the 16 day period.
The dividing line to this equation appears to come down to status of property owner or property renter, the first of which have the opportunity to cash in on London lettings; whilst the former should either avoid the capital at all costs, or look carefully at rental agreements to ensure that surprise price hikes and temporary eviction are not on the cards.
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