Holiday rental prices in London triple jump during Olympics, Beat long lets
Sports events worldwide often bring a lot of visitors and tourists to the hosting countries depending on the popularity of events. While Cricket, Hockey & Tennis tournaments are big and popular, a globally personified event like the Olympics happens to be one of its kinds. Olympics 2012 being held in London has the capacity to bring inflation, especially in terms of residential lettings, tourist attractions and shopping hubs. The rise is in the cost of short term rental accommodation is only becoming evident day by day.
The trends in holiday rental prices in the capital have been affected by London Olympics big time. With reference to a recent survey on holiday accommodations, the average cost per bedroom for a week in London in July and August is at an exceptionally high £711 which is more than three times the cost compared to some other parts of the country where residential rents may have seen a change but not to this extent. This has happened primarily because of the increased demand for accommodation in the lettings market as a result of the Olympics being held in London. As it is, London is quite a desirable destination for vacationers and an important business hub for corporate groups or individuals. An extremely awaited sports event like the Olympics has fuelled the rental market in the capital further, particularly for short term lets in London.
While London is seeing an immensely upward trend, the costs per room trends in other areas are strikingly different. Rents in Yorkshire are £217 per room; Scottish Highlands are £229, North Wales and Cumbria at £237 and £242 respectively, offering good value for money.
However, where the short let market is getting costlier during Olympics, the long lets market is witnessing a different trend. Although prime London residential lettings market has experienced a strong set off in Quarter 1 of 2012, and the rents have also increased by 9.7% as compared to the same time in 2011, a number of prime locations like Chelsea, South Kensington, Knightsbridge, Belgravia and Canary Wharf are going through a considerable rental fall. Nevertheless, rental growth for prime rental accommodation within London in 2012 is still being forecasted at approximately 2-4%.
