SCRUM DOWN!
There’s nothing like a major sporting event to bolster a city’s appeal to buyers
YOU may be aware that the Rugby World Cup is upon us — and interest is percolating nicely. This is the first major international tournament to be hosted in Britain since the 2012 Olympics and Paralympics.
But unlike those games, which centred around the South-East of England, the rugby is being hosted in 13 locations, across ten cities throughout England and in Cardiff.
And it isn’t just the players on show. Here is an opportunity to take a snapshot of property rental and purchase prices — and measure the impact of a major sporting event.
The company, Holiday Lettings, has noted a year on year increase on rentals during the six weeks of the tournament in every host city. The biggest, at 345 per cent, is in Leeds. Manchester has experienced a rise of 189 per cent, and Brighton the smallest, at 18 per cent.
‘We saw the same effect in Glasgow during the Commonwealth Games and every year during Wimbledon. As a homeowner, you can charge a premium during sporting events, often about 50 per cent more,’ says Saskia Welman, from Holiday Lettings.
In Cardiff, a modern, twobedroom apartment in Cardiff Bay, a ten-minute walk from the city centre and Millennium Stadium is priced £3,000 per week during October. That’s double the August high season rate and five times the low season rate of £600 per week. The price per night is a whopping £900 per night for a minimum two-night stay.
Demand as well as supply is high. Global online homeshare giant, Airbnb, has measured the increase in booking requests in the host cities for Rugby World Cup game nights versus non-game nights. Newcastle tops the table at a staggering 785 per cent increase; Birmingham is runner up with a rise of 445 per cent; Leeds is third with a hike of 354 per cent. A price jump was noted in every single host city.
Bradley Bartlett, at Chestertons, says: ‘The Rugby World Cup is a great chance for the host cities to put themselves in the international shop window. And short lets can be appealing to homeowners who spend time away on business, or the winter months abroad.’
Daniel Killick, from the Kew branch of Chestertons, close to English Rugby’s HQ in Twickenham, says: ‘Over the past few weeks we’ve received numerous calls from homeowners about letting their properties out during the tournament.
‘When looking to make your home available as a short let, it’s best to seek professional advice, so you don’t fall foul of red tape — by invalidating existing home insurance policies for instance, which typically don’t allow for such arrangements.
‘Look at similar properties in the area and price accordingly,’ says Welman, of Holiday Lettings.
Sales have been up in host cities running up to the tournament, too.
Caroline Vanner, of Savills’ Cardiff office, says: ‘The Rugby World Cup has proved an enormous draw for Cardiff. We have seen people from as far afield as Norway buying in city centre developments.’
Property price increases in the host cities make for good sport, too. A new Rugby Ranking released by
an online estate agent, has revealed how each host city rates in terms of its property price growth over the last five years.
Unsurprisingly, London takes the trophy, but it’s not because of Twickenham Stadium, which is the venue for the prestigious final match on October 31, but cross-town rival, the Stadium at Queen Elizabeth Olympic Park in Stratford.
HERE, in East London, property value growth has been recorded at 35.6 per cent, taking 2010’s average value of £310,863 to £421,542.
England’s home ground of Twickenham Stadium is, however, home to the most expensive property of the 11 host cities. Today’s average property value in this corner of South-West London stands at £557,305, 28.6 per cent higher than five years previous.
The only Welsh location playing host to the Rugby World Cup is the Millennium Stadium, Cardiff, and it is this venue that takes 8th place in the Rugby Ranking. Here, 11.2 per cent property price growth has been seen over the past five years, with 2010’s £160,133 standing at £178,144.
Taking the wooden spoon in the ranking is Birmingham’s Villa Park, with the lowest property price growth of all Rugby World Cup venues over the last five years, with 8.3 per cent growth, bringing average prices from £96,493 in 2010 to £104,518 today.
Adam Male, founder of an online estate agent, says of their Rugby Ranking: ‘While the affluent South-East is known to have seen rapid property price growth in recent times, other areas, such as Milton Keynes and Leicester, have also witnessed impressive increases in the past five years.
‘The 13 sporting locations involved in the Rugby World Cup are the focus of attention worldwide. It remains to be seen what further effect this will have on their house prices of the future.’