We’ve recently come across an article saying that rents are down by 20% in London, landlords are finding it difficult to find tenants. Will it bounce back?
I think that’s a really good question because actually that is one of their concerns. We haven’t had 20% not 20% drops you know we’re getting probably 5%, 3-5% sort of thing drops in London. The big distinction here is if a lot of your block was serviced apartments those service apartments are pretty much decimated now. They’re being put back onto the market and because of that you know your apartment block which may have had 50 apartments but only 20 of them are long-term let now you’re competing 30 all of a sudden. It will come back.
Once that slack has been taken up then it’ll start to grow again. This is a seasonal situational thing once it’s fixed it’ll be fine. I don’t think you need to worry about that too much. Obviously if you’ve lost 20% of your rent you know that is devastating but you know the reality is I’m not seeing 20 %down on any of the stuff that we’re doing in London. I think you know this is where I think the media they’ll hear one property and that becomes the, you know 20% drop. We’re just not seeing it i mean and we’ve got I think seven or eight hundred properties in and around London that we manage you know so to not have any real you know 20% you know 3%, 4%. 5% you know there might be few that it’s a bit more but you know then it’s not that drastic.