Experts Predict Rent Reductions Following the Olympic Games

31 July 2012 Categories: News

Experts Predict Rent Reductions Following the Olympic Games

Financial experts have predicted a sharp fall in London rental prices following the conclusion of the Olympic Games as thousands of landlords attempt to find new tenants for properties they are now using as Olympic lets. In just a few short weeks from now the London rental market, and especially the markets in the boroughs surrounding the Olympic venues, will be flooded with rental properties but demand in these areas will not increase at the same rate. This means that to avoid the possibility of void periods landlords may have to drop their asking prices considerably.

Graham Kinnear, managing director of Landlord Assist, a tenant referencing agency, commented earlier this year that greedy landlords looking to make huge profits from the London Olympics would struggle to find reliable tenants following the games, and it seems he could be right.

Commenting again last week, Mr Kinnear said “Following the event, the rental market in London will be swamped with vacant properties, leaving landlords with no choice but to reduce rents as they try to find replacement tenants and avoid having a void period on their hands. The effect this could have on the local market could be for rents to fall sharply as landlords compete for the available tenants. In our experience this could take around six to 12 months to reach a more stable equilibrium.”