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Saturday, 13 April 2013

Bloomsbury Attracts more Demand for Small Flats

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Due to the proposed increases in University fees over the next year the demand for flats for rent in Bloomsbury has significantly increased in correlation. Almost half of the current residents in Bloomsbury are young University students and the academia that accompanies them. Increasingly more University students and young professionals are being drawn to this area and there is an ever increasing need for one and two bedroom flats with short rental agreements to house them.

Lets to individuals and single corporate professional tenants has increased by twenty percent for one and two bedroom flats over the past year. This is particularly true in the mid-market where the stock of desirable flats has regularly been very low, Recently, due to redundancies in London, there has been a decrease in the number of business professionals who are sharing flats with additional housemates and a significant increase in the number of people who are seeking one and two bedroom properties with single occupancy.

Over the last year, rental rates have increased by forty percent due to three different major contributing factors; first, the number of achievable rentals (rentals that are currently charging the highest possible price that someone would be willing to pay for the flat) has increased ten to fifteen percent which encourages tenants to stay in their current lease for longer periods of time and regularly renew their leases instead of seeking out different, likely more expensive properties, second, it is important to note the lack of available one and two bedroom flats on the market at the mid-range price point and finally the increasingly difficulty of applying for and successfully being selected for financing on a new purchase has discouraged a number of people looking to buy instead of rent. Larger flats do not seem to follow these same increases, they have stayed statistically steady and available information indicates that this will probably continue.

Even with the current problems with the global economy crisis and the difficult financial situations in Europe, as well as around the world, we have no reason to believe that the demand for one and two bedroom mid-priced rentals of flats in London will decrease. London remains the financial centre of the world and is well known for its low crime rates and renown for being one of the safest cities in the world. These factors make London an incredible investment opportunity for landlords who are looking to make further property investments in flat rentals.

The demand for Bloomsbury flats for rent is very high and will only increase with the looming London 2012 Olympics on the horizon as well as the increased need for general purpose housing for students and professionals with a minimum of a three month lease. Not everyone will be able to benefit substantially financially during the Olympics, even though many people and companies are trying to maximize the opportunity that will potentially be available during that time. There is no reason to overlook the opportunities that these combined factors create.

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