The rental market in parts of prime central London is becoming increasingly dominated by well-funded overseas students, according to a leading letting agent.
Susan Cohen, head of lettings at Mayfair-based Pastor Real Estate, says this group has accounted for 75 per cent of her clientele in recent months.
“Their budgets bring a whole new meaning to the term 'student digs', with a great number of them having from £1,000 to £2,000 per week to spend" she says.
In most cases these students take out 12 month leases and make an upfront payment for the full length of the tenancy.
Cohen says they typically want modern - often new - properties. Prices in PCL range from £800 to £1,000 per week for new furnished one bedroom apartments and from £2,000 to £2,500 for two bedroom apartments.
Cohen also reports that corporate tenants are now returning to the market after a significantly quieter period for the sector.
“We’ve seen European corporates from France, Italy, Germany and the Scandinavian countries showing confidence in our economy; underpinning the fact that London remains at the hub of worldwide business” she adds.