We often look at London and ask ourselves how does United Kingdom’s capital standout economically, in comparison to other major cities such as New York, when it comes to conducting business and maintaining a healthy environment for all type of enterprises.

In this week’s blog, we want to delve into London’s successful financial sector, its place in the world for global businesses but also its current housing situation for both short and long-term stays.


Understanding London’s economy

Unlike other metropolises such as Washington and Moscow, which are known to be the political capital of their respective countries but not their economic centres, London manages to achieve both statuses performing the leading role in government and financially paving the way for the country’s growth in all sectors. According to CEBR (UK’s leading economics consultancies), in 2018 London’s output will face an increase of 16% since the financial crash of 2008.

In the past two decades, London saw a substantial increase in the financial sector due to a number of essential factors.

Developments in emerging markets have changed the global financial system making it no longer transatlantically fixated. Under these circumstances, London has a larger global reach as due to the time zone its working hours overlap with those of centres all around the world.

London saw a massive increase in investment during the millennium transition because of its light touch regulation and while New York was seeing a decrease in the stable business environment because of its bureaucracy and restrictive regulatory reforms, foreign companies simply decided to transit their businesses and list their stocks in London to avoid further hassle and loss. As a result, over 40% of world foreign equities are traded in London according to GASME (Global Alliance of SMEs).

 

The serviced apartment industry in London

Recognised as a global economic capital, housing in London can be relatively easy to find and to afford, given the average salary in the capital. Even though prices are rising, it has been proven over time that people seem to pay less attention to this factor due to the opportunities and high level of lifestyle the capital offers. Surprisingly the United Kingdom capital saw the lowest rate of growth in private rents among English regions (according to London Datastore) and its annual private rent increase has been below the annual wage increases (Office of National Statistics). In 2016/17, London saw an increase in new housing supply with nearly 40.000 new homes built or converted from commercial buildings into residential properties.

Looking at the serviced apartments industry, we can observe a prolific market for its providers as the metropolis is host to multiple businesses, cultural and sports events annually, thus, attracting a high number of tourists as well as temporary stay working individuals. According to a report from accountancy firm BDO, the average hotel room across the country exceeded £100 for the first time turning people to turn towards curated apartments. With the market already being present, London has managed to establish a strong presence within the industry with various companies offering apartments for all social categories. In 2017, The UK serviced apartment sector attained 81.7% occupancy with London and Edinburgh being at the top of the chart. Industry reports mention that business travellers value the independence, flexibility and variety as the decision turn point when deciding what type of accommodation they want for the duration of their trip.

Short Stay Citizens is a clear example of an SME company that wishes to deliver a fine service by offering handpicked serviced apartments all around Europe. With a strong focus on London, our aim is to offer the most suitable properties located in the best neighbourhoods of the city, for the client to feel just like home. The company focuses on its product which in essence is a service and puts the needs of the client on the top of their business model in order for the client to experience a wonderful stay wherever he decides to travel.

 


Looking back to London’s ascension as a global business capital, this major city has managed to stay relevant in multiple industries, with its financial sector being on top of the list. The constant investment shows that the city displays an open view on globalization recognizing the importance of foreign investment in the global economy.  

Industry reports mention that business travellers value the independence, flexibility and variety as the decision turn-point when choosing what type of accommodation they want for the duration of their trip. As a result, the serviced apartments industry is continuously investing in means to improve their service. Companies aim to attract a wider audience with numerous businesses from relevant markets joining forces and adapting to the consumer trends and global economic changes.

 

 


By Catalin Neamtu, Short Stay Citizens 

Based on:

What Makes London a Global City? by Global Alliance of SME

How did London become the financial centre of the world? by Benjamin Attley for Quora.com

Why London is the Business Capital of Europe, by Jason O’conaill for http://infinitysdc.net

UK Serviced Apartment Sector Achieves 81.7% Occupancy, by Emma Lake for The Caterer

London Housing Market Report by London Datastore

Where is the Serviced Apartment Sector Heading? By Fiona Murchie for Relocate Magazine