Overall Market View

An Overall Market View – Spring 2011/Summer 2011

The East London lettings market is very busy with tenant enquiries however the level of stock has depleted considerably. This therefore is a positive to any Landlord or Investor.  Rents have increased in 2011, with gains shown in areas currently under regeneration programmes and locations close to major transport links.  There is still a huge demand particularly as the World now has its eye on East London due to the 2012 Olympic Games. 

The construction of the Olympic Park, Stratford City and the Channel Tunnel Rail Link projects  will see in excess of 22,000 construction staff working onsite for the remaining months leading up to the Olympic Games and after.  Since there is limited skilled workforce within London, the majority of the construction staff will come from outside London, requiring accommodation for the duration of their contract onsite.  The demand on accommodation within the area will therefore increase significantly. We already have contracts in place with some of these employers.

In addition, the credit crunch has had a direct effect on the sales market and this ensures that more tenants are looking for rented accommodation as they are unable to either get a mortgage or are worried about a possible negative equity effect.

The long-term prospects for East London are set to improve with the opening of the International Terminal at Stratford, the Docklands Light Railway extension currently being built underneath the River Thames and the continuing overall expansion of housing and infrastructure throughout the Thames Gateway, including plans for the Thames Gateway Bridge and the Stratford City project. 

Not only can investors cover all costs but can now work on the premise that the East London property market is forecasted to expand and increase significantly, with parts of East London and Docklands being seen as “potential goldmines” for long term growth.