Relocation agents are experiencing a ‘no fly’ zone over London during the Olympic period as the lack of short-term rental properties, inflated airfares and reports of serious congestion expected during the Games are deterring companies from relocating staff.
This will result in a surge in demand for rental property at the beginning of September, reports property consultants Cluttons.
The summer is normally the busiest time of year for relocation agents, as the City is busy hiring new graduates, people take advantage of summer holidays to relocate and families take up residence in advance of the start of the school term in September.
People who are relocating would normally be accommodated in short-term lets, often serviced accommodation, for a month or so while a more permanent rental is found.
This year, Olympic visitors have swallowed up the supply of reasonably priced short-term lets and serviced accommodation in the city, which has prompted companies to impose a moratorium on relocations this summer.
Cluttons’ analysis suggests that many new starters in the London employment market are delaying relocation until after the Olympics in order both to avoid the disruption and secure lower costs in the autumn.
Lynn Hilton, partner for residential lettings at Cluttons, said: “The appetite for relocating staff to London remains strong, but companies have effectively imposed a summer freeze on relocation activity this year as the Olympics wipes out the availability of short-term lets and hikes costs.
“This demand is not going away, and come September we expect to see a surge in relocation activity in the central London lettings market as agents battle it out for the best properties.
“This will coincide with an increase in supply as inflated ‘Olympic let’ properties trickle back on to the market at regular prices.”
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