New research on Friday revealed that average rents in boroughs with tech giants nearby are 44% higher than the London average.
Howsy, a rental management platform, compares current rental costs in neighborhoods with Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Facebook (NASDAQ: FB) to other neighborhoods. I investigated. Average for London.
Westminster, home to Microsoft and Facebook, is the most expensive, with average monthly rents of £2,838. This is 64% higher than the London average.
Mr Howsey also said rental prices in these boroughs had risen by an average of 4.7% since businesses moved in, compared to a 1.7% rise in London as a whole.
Howsy’s research cited Google’s move to Camden in 2016 as the “most notable” example, with rents in the borough increasing by 9.2% since the company moved there. This compares to an increase of 0.8% across London.
Callum Brannan, founder and CEO of Howsy, said: “It’s great to see such big names making a commitment to London. The wide-ranging economic benefits that we will bring through our investment are a big plus.” the study.
“However, the downside of so many people being drawn to the rental market is that the increased demand causes rental prices to soar. “This could create further economic obstacles for people living in the area and potentially displace many existing residents,” the founder and CEO continued.
“This new age of tenancy also comes with an evolving level of requirements for UK landlords to deal with. As we become a 24/7 connected country, tenants will need to I look forward to finding agents and platforms that can do this.”
