The younger generation of Londoners prefer to rent a house

The rental market of elite real estate of London rebounded slightly down in the beginning of the year to return to their values fall. In most areas of Central and East London rents for residential property increased by more than 4 %. The study presented by analysts of Agency of real estate , shows that last year’s change to the scale of Stamp duty has had an impact not only on the market for the sale of real estate, where significantly decreased the number of transactions in the market, but also on the rental market, where more and more tenants willing to sign long-term leases. Prime rental market in Central London saw a strong growth in the last quarter after several months of stagnation and continues to grow in this quarter. Many foreign professionals prefer to rent an apartment or house in Central London, as it results in significant savings compared to the purchase of real estate in the same area, especially in the real estate sector, where the rate of Stamp duty is 12%.

In East London has also seen a boom in demand for rental property, but for other reasons. In this part of London more lives of young British people, the so-called young generation – Millennium, which in principle does not consider the purchase of real estate as the goal of his life. These young people are more mobile and change jobs more often than the previous generation. Therefore, it makes no sense to bind your life to one place.

One of the areas of London where rental prices have fallen in the North of London. North London rather has significantly increased delivery of new housing over the last year. In addition, is a significant factor in potential tenants for closure of the London underground station Tottenham Court Road on the Northern line for a few months in connection with the upcoming launch of a line of high-speed trains Crossrail.

From the point of view of investment experts recommend investing in East London, where is concentrated the younger generation in London, choosing rental housing as the main life style.

The younger generation prefers to live for today, not to save money and limit myself in anything , to save for a Deposit. And in East London now a lot of trendy and stylish places where excellent bars, restaurants and other entertainment that attracts young people.

Overall, despite a tumultuous August and September, the rental market of real estate of London for the first time since 2007 has created an environment less favourable for homeowners. Increased range of facilities on the rental market of London, homeowners need to exert more efforts for realization of their property.

® Helen G. Antre 20.10.2015

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