Lettings platform Howsy.com reports that the presence of some of the world’s biggest tech giants is pushing up London rental prices surrounding their main offices in the capital.
The firm looked at data including the current cost of renting in boroughs home to Google, Microsoft, Amazon and Facebook, the rental growth since each company opened their office, and the rental markets surrounding each specific office.
The firm reports that on average, its data suggests boroughs home to a tech giant are also home to an average rental cost 44 per cent higher than the London average.
Westminster is the highest, it reports, as it is home to Microsoft and Facebook, with the average monthly rent costing £2,838 – 64 per cent above the London average.
On average, rental prices in these boroughs has increased by 4.7% since these companies have moved in compared to an increase of just 1.7% across London as a whole.
Google’s move to Camden, where it has been based since 2016, have increased by 9.2 per cent while London as a whole has seen an increase of under 1 per cent.
Since Amazon moved to Hackney in 2017, the average rental cost has increased by 4.7 per cent, compared to 2.5 per cent in London, with rents up 4.5 per cent in Westminster since Facebook moved in last year compared to 2.9 per cent across London.
Rents surrounding the offices of these tech giants are even higher, the firm claims.
With an average cost of £3,413, the rental market surrounding Amazon’s Hackney base is 86 per cent higher than the average rent across the borough.
Surrounding Google’s current campus, the average rent of £3,200 is 32 per cent higher than Camden as a whole (£2,427).
At 4 per cent, the gap between rent surrounding Microsoft’s Westminster office and the borough as a whole is the smallest increase, but Facebook’s Westminster HQ is the most tenant-friendly, with the average rent surrounding it coming in -39% cheaper than the wider borough.
Founder and CEO of Howsy, Calum Brannan, said it was great to see big tech making a home in London and bringing jobs to the area.
“However, the downside of so many additional people being drawn to the rental market is this greater demand causes a spike in rental prices,” he said.
“This creates a further financial obstacle for those living in the area without the benefit of a robust tech-based salary and can see many existing residents drive out.”