Rental prices rise in boroughs with tech giants

Michael Lloyd

September 27, 2019

London boroughs home to a tech giant company have a rental yield costing 44% higher than the London average, lettings platform Howsy has found.

Westminster, which is home to Microsoft and Facebook, has the highest rental prices with the average monthly rent amounting to 64% above the London average.

Calum Brannan, founder and chief executive of Howsy, said: “It’s great to see such big names committing to London, and the wider economic benefit they bring through the provision of jobs, investing in their workforce and the surrounding area is a big plus.

“However, the downside of so many additional people being drawn to the rental market is this greater demand causes a spike in rental prices.

“This creates a further financial obstacle for those living in the area without the benefit of a robust tech-based salary and can see many existing residents drive out.

“This new age of tenant also comes with an evolved level of requirements for UK landlords to deal with and as we become a nation that is connected on a 24/7 basis, tenants expect an agent or platform that can provide such a service.

“This is why more landlords are turning to lettings products like Howsy, as we can shoulder the demand of tenants any time of day or night, without any additional fee or inconvenience.”

On average, rental prices in boroughs with tech giants have increased by 4.7% since the companies arrived in the area compared to an increase of 1.7% across the capital as a whole.

A key highlight from the research is Google’s move to Camden where they have been based since 2016.

During this time rents in the borough have risen by 9.2%.

Since Amazon moved to Hackney in 2017, the average rental cost has increased by 4.7%.

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