Temporary accommodation challenges
There is already a sharp rise in demand for temporary rental accommodation, and property is in short supply. It is expected that accommodation providers will have 100 percent occupancy, so time is of the essence when arranging a place to stay. Fix your travel dates as early as possible.

And expect to pay. Temporary accommodation costs are expected to rise by 50 percent, and hotel prices are expected to go up as much as 500 percent. The costs and other challenges of securing accommodation are driving some clients to consider alternative solutions: basing themselves in Birmingham or Manchester, or, in the case of one Pricoa client, bringing in a cruise ship to lodge its staff!

Long-term rental market challenges
Olympic fever is spreading across London, and landlords are expecting to cash in on the demand for property during the Olympics. The so-called "Olympic effect" can already be felt when it comes to property renewals and negotiating now for the year ahead.

Landlords are hedging their bets to see what the next year will bring as far as rent hikes and demand, and are increasingly hesitant to commit to property renewals too far in advance. Tenancies are taking much longer than usual to negotiate as individual tenancy clauses are examined in detail.

Rents are expected to rise between 12 and 25 percent citywide, compared with a 5 percent increase in previous years. ‘Sound advice,' says Brady, ‘would be to lock in robust renewal options and break clauses this year to avoid a hike in price next year, to give the expat the best possible tenancy agreement terms. If necessary, renew for a longer period to take you through the Olympic period, or consider negotiating harder around other terms in the lease to ensure security of tenure.'

Your choice of location will also be a major factor in how available and affordable long-term accommodation will be. The City, Docklands and the major expat hotspots in Central London will see the steepest rises in costs, as will any property near the Olympic park itself.

Transportation challenges
Transportation challenges will abound with the heaving population of London during the Olympic games. They will range from the somewhat inconvenient - you may have to conduct home searches on foot or by bus or tube, which may mean you see fewer properties - to the deeply frustrating and expensive - such as delays with household goods deliveries.

Those planning for the delivery of household goods will have to be prepared for possible customs delays and increased costs due to crew overtime and furniture rental in the case of delayed shipments.

There will also be a ban on kerbside delivery during daytime hours and a strict limit on vehicle sizes, especially in Central London or around the Olympics Venues, and people can expect deliveries in smaller batches, made at night or over the course of several days.

Plan ahead!
Pricoa encourages clients to stay positive, and prepare for some additional challenges but not feel discouraged by them. All of these challenges are surmountable with enough prior planning and organization. According to Pricoa, your best bet if relocated to London during this exciting time is to be informed of potential hurdles and delays, be flexible and have a contingency plan - just in case.

Pricoa are running a number of projects and events designed to educate and inform expats and their employers about the challenges and solutions of the Olympics 2012. For more information, please visit www.pricoarelocation.com

Pricoa Relocation is a subsidiary of Prudential Financial, headquartered in the US.

© 2011 Pricoa Relocation Services a division of Prudential Financial, Inc. and its related entities.
Prudential Financial, Inc. of the United States is not affiliated with Prudential plc. which is headquartered in the United Kingdom.

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