In London, the property market is extremely vibrant, dynamic, and volatile. The demands of Londoners are constantly shifting, as new ways of working and living are being constantly discovered and popularised. We’re increasingly working unusual patterns, moving around more often, and looking for living spaces that can suit our needs in the short term.
So, what implications does all of this have for the property market? There are a few things worth considering.
Hybrid living becomes the new normal
To begin with, we should note that hybrid working is very popular in the capital. A substantial chunk of London’s population spends at least some of the working week at home. This means not only that we prefer adaptable homes that can make for great productive spaces, but that we no longer need homes that are quite as central. When you’re only coming into the office for two or three days a week, you might be more willing to deal with a longer commute.
Flexible stays gain ground in Central London
Travellers and professionals in the centre of the city are looking for shorter stays. You might want to stay in a given position for a matter of weeks or months before moving on. Or, you might want to stay for a longer period, while still retaining the flexibility that comes with a short-term lease.
This is where aparthotels in Waterloo and elsewhere come into their own. They offer kitchen facilities, convenience, and everything else that you might need.
Short stay demand continues to rise
At the same time, we should consider that the demand for very short stays remains strong. Given this culture of high turnover, many landlords are optimising in order to appeal to a broad range of potential tenants, and to get their properties occupied quickly.
Investors look for low friction assets
When the model for accommodation is flexible, it becomes easy for new tenants to move in. This reduces the administrative burden that comes with running a rental property, and leads to the sustained occupancy rates that ultimately keep such investments profitable. We should be aware, however, of the potential impact that the new Renter’s Rights Act might have on the business model of landlords.
Regeneration zones benefit most
Many parts of London are undergoing prolonged development. This leads to greater desirability for renters, thanks to the proximity of jobs, transport links, green spaces, and other desirable features. When landlords can react to demand by offering modern, mixed-use living spaces, they can capitalise on this demand.
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