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US bankers’ return boosts rental prospects in London

publication date: Aug 23, 2010
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US bank employees are a significant factor in the rise in corporate tenants making a timely return to the market, according to Cluttons, offering a boost to landlords.

Several locations across prime Central London, including Kensington, Chelsea, Holland Park and Wapping, have seen an increase in tenants relocating for business, largely from America and Europe. Traditionally, a high percentage of residential property in these parts of the capital was occupied by corporate tenants, but the recession impacted heavily on the number of business relocations.

Now Cluttons is recording a 35 per cent rise in corporate lets this summer. Growth in the corporate market will come as a major boost to the industry as landlords take a view on the impact of the latest CGT changes. Lynn Hilton, Partner for Residential Lettings at Cluttons, said, “Corporate lets represent a significant portion of the rental market in prime London and the decline in recent years has impacted on tenant demographics and rental returns for landlords.

“It is hugely encouraging to see a renewed demand, especially among those coming from overseas. This indicates a positive outlook going forward and reinforces London’s leading position in the world of business. The current rise in corporate tenants will help support micro markets and encourage growth across key parts of the capital.”