More than half (51%) of landlords and homeowners who rent out properties and furnished rooms are hiking up their prices for the London Olympics, according to a poll by SpareRoom.co.uk.
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Almost a third (30%) of property owners and landlords renting out rooms for the Olympics will increase rents by up to 50%, 27% will double rents, while 16% will triple rents
- 44% already advertising rooms have had less interest than expected
- Almost half (45%) of Olympic rentals are not near the events
- 7% of landlords plan to kick out current tenants to capitalise on Olympic rentals
- 58% of landlords plan to cash in on last minute bookings
The survey of more than 1,000 UK property owners planning on renting out rooms or whole properties for the Olympics, revealed that almost a third (30%) are increasing prices by half, while 27% plan to double rents for the three week period when the Games are on. Staggeringly, another 16% admit they are tripling rents to cash in on Olympic tourists.
But of those polled, almost half (45%) are advertising Olympic rentals that are not actually walking distance from any of the sporting venues. With travel chaos and long delays expected across the capital in particular, but also other UK venues during the Games, it should come as little surprise that 44% say they have had less interest from tourists and sports fans than they hoped. A large proportion, more than a quarter (28%) in fact, say they have received absolutely no interest at all. And it’s not just London property owners capitalising on the Olympics – 40% of Brits planning to rent out rooms for the Olympics have properties with postcodes outside of London.
Shockingly, 7% of landlords have admitted they plan to get rid of existing tenants to profit from this money-making opportunity, risking a void period once the Games are over. Another 45% plan to cash in on the Olympics as they claim their existing tenants or lodgers were moving out anyway.
The majority of those polled (58%) appear to be playing a game of double or quits. They have not yet advertised their properties for the Olympics in a bid to profit from those desperately seeking last minute accommodation.
Matt Hutchinson, director of SpareRoom.co.uk, comments: “It’s easy to see why landlords might be tempted by the prospect of making a tidy sum from tourists looking for accommodation during the Games. But at what price?
“Landlords should think twice before asking good tenants to leave, even for just a few weeks, in the blind pursuit of a quick buck. Once the Olympics are over, they could be left with an empty flat and no rental income, which could potentially cancel out the money they’ve made. Of course, for the 45% whose tenants happen to be moving on as the Games begin, it’s a great way to make some extra cash.
“Renting out a spare room in your own home or flatshare can be a good way of making some money during the Olympics, but you should proceed with caution.
“We would advise contacting your home insurer. It may be they recommend you take out public liability insurance, although this is already included in some home insurance policies. You should also contact your mortgage provider, as there may be a clause in your agreement that prevents you from having paying guests without informing them first. If you rent you should check with your landlord.
“Your main priority should be personal safety. Remember, this isn’t like taking in a lodger, where you hold viewings first and choose the person you’re most comfortable with. You won’t be able to hand pick the person who stays with you, so be vigilant. Have some email contact first to make sure you’re comfortable with the arrangement.
“The bottom line is that the Olympics presents an opportunity to make money, but landlords shouldn’t let pound signs cloud their judgement. Do your research and make sure you know the wider implications first.”
Further Information
Methodology
SpareRoom.co.uk polled more than 1,000 people who said they were interested in or already renting out a room or rooms during the London Olympics. This includes buy-to-let landlords and live-in landlords, who plan to remain in the property and rent out rooms in their homes.
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