Duncan Lewis Solicitors

Updates of Legal Affairs…

The big rental boom for neighbours at the Olympics stadium is after all only rumours

April 2nd, 2012
The pre-Olympics rental values that prompted the landlords to jack up rentals many folds and in some cases evicting the existing tenants for getting a better value in wake of the demand due to the October Olympics has suddenly found few takers in the Olympics neighbours in Stratford where the rentals were offered as high as £4,000-a-week.
The whole story making rounds that rentals were hitting roof tops seem to be just rumours as in the case of Kate Greenslade and Gary Seabrook who too had believed that they could get a good income of their properties and it was an ideal opportunity for them to embark on a world trip.
The couple having a video production company and living in a bright two bedroom parkside flat, a mile from the Olympic stadium, had like other neighbours put their property on the rental websites but after seven months finding no takers have sliced their price form £3,000 per week to £2,500 per week . though there were several inquiries except for two or three night stays and a booking for the week before the Olympics begin no one has taken it for the entire period of the games.
With the opening ceremony approaching fast many homeowners are realizing that the sublet windfall as promised by the Games is not looking as profitable as they expected.
Camilla Shaughnessy, owner of EventfulStays.com, which offers rentals for sporting and cultural fixtures around the country, says that there is so much of hype around the Olympics, which she says, as “just another event”. She added that it is happening but it’s not the big boom time as yet though it would get busier as it gets closer. Some people are being very greedy when they are renting the properties but the visitors are also clever.
Gary Clark, director of London2012rentals.com, agrees that expectations are often wildly unrealistic. Three or four times of the normal rental value can be expected but people are expecting seven eight times that amount. The rooms offered should also be good in décor to fetch a good rental and unrealistic expectations are bound to disappoint he added there are people in Stratford who have been offering their properties at 20 times their normal rental values the Estate Gazette had reported last week.
Other things apart experts also pointed out that subletting a property may be forbidden under the terms a mortgage, and might invalidate home insurance.
Some local authorities forbid holiday subletting without a costly “change of use” license, which can take several months to acquire. Any rental income, in addition, is also subject to tax.
Meanwhile, thousands of homeowners wait and hope that they too can pocket some Olympic gold.