Landlords considering purchasing property with the intention of making a fortune from the Olympic Games are being warned that the predicted massive rental fees from overseas visitors may now not materialise.
For the past 12 months industry insiders have said landlords in London could expect to get up to four times their usual rental charge for the duration of the Olympic Games and Paralympic Games later this year. It is true that letting agents have been inundated with enquiries from would-be landlords willing to rent out their properties but enquiries from would-be short term tenants are nowhere near the same volume.
Lucy Morton, head of a lettings agency in Central London, said “In my opinion, it is the hoteliers who will benefit from increased occupancy and rates and not the majority of landlords. The clear advantage is that the average increase is 400% of the long-term rental value, but this may vary depending on the property and location.”
She went on to add: “However, the major drawback is the void period running up to the let, and more importantly, following the let. Landlords in Central London are not used to purchasing landlord insurance with an empty property clause and if long-term investors jump on the Olympic bandwagon and launch their properties back on to the market in September, there is a strong risk that there will be a sudden surge in supply of properties available, without the demand.”
Ms Morton went on to advise landlords to stick with their present clients unless the tenancy agreement runs out at the very time when the Olympic Games begin. However, those wanting to get away from the capital while the Olympics are in full flow will still probably find enough interest from visitors to make it worth their while letting out their homes and enjoying a holiday far from the madding crowd.