A NEW ERA FOR CORPORATE HOUSING

Rentals VS Hotels - why switch?

In an era marked by dynamic shifts in accommodation preferences and economic landscapes, Corporate Rentals presents a comprehensive analysis shedding light on the decline of traditional hotel stays juxtaposed with the burgeoning rise of corporate rentals. Our research comprises of property publications and databases released within the last 2 years, which amalgamate various data points to provide a holistic view of the market trends shaping corporate accommodation in 2024 and beyond.

Cost Savings with Rentals VS Hotels

Hotels per month

UK | Average Hotels Fees: £4,580.40 - 112.8% increase

London | Average Hotel Fees: £7,406.70 - 111% increase

ROUK | Average Hotel Fees: £2,790.00 - 93.6% increase

Rentals per month

UK | Average Rent: £1,276.00

London | Average Rent: £2,119.00

ROUK | Average Rent: £1,011.53

Expanding Housing Solutions for Corporates: Meeting Growing Demand

The rental market in the UK is experiencing a notable transformation, with an increasing number of housing solutions catering to the needs of corporate clientele. Let's delve into the data to understand the evolving landscape:

  • The number of letting agents across the UK saw a significant annual growth rate of 10.00% in 2023, indicating a burgeoning interest in rental properties.

  • Tenant demand for rental properties remains robust, with a staggering 54% seeking rental accommodations. This high demand underscores the necessity for diverse housing solutions to accommodate the needs of corporate tenants.

  • Over the past decade, the UK property market has witnessed a notable increase, with a 12% rise in rental properties compared to a 7.5% increase in total homes. As a result, rentals now constitute 35.7% of the UK property market, indicating a growing preference for rental accommodations.

  • The emergence of corporate and investment rented homes further exemplifies the shifting dynamics of the rental market. With over UK-wide 90,000 investment rental homes being built in 2024 alone, there's a concerted effort to provide stable and flexible housing solutions tailored to the needs of residential and corporate tenants.

Enhanced Employee Satisfaction: The Case for Rental Accommodation Over Hotels

Housing employees in rental accommodation rather than hotels offers a multitude of benefits that enhance their overall experience and satisfaction, as supported by various studies and industry insights.

According to research cited in academic sources such as Tussyadiah, Sánchez-Franco & Alonso-Dos-Santos, and Mody et al., guests staying in peer-to-peer (P2P) accommodation, such as rentals and AirBnB properties, report higher levels of satisfaction compared to traditional hotel stays. These studies highlight the importance of amenities, the sense of feeling at home, and the authentic local experience provided by P2P accommodation, which contribute to enhanced tenant satisfaction.

Additionally, industry sources such as Dolphinsquare and TheHomelike further emphasise the benefits of staying in P2P accommodation for business travel. These benefits include stability, cost savings, the ability to enjoy own food, privacy, furniture & equipment availability, family and friend visits, parking facilities, ample space, and the opportunity to feel like a local.

By synthesising findings from academic research and industry insights, it becomes evident that rental accommodation offer a superior experience for business travellers, providing comfort, convenience, and authenticity that contribute to overall satisfaction and well-being during corporate assignments.

Conclusion

The data paints a clear picture of the evolving rental landscape, with an increasing focus on providing diverse housing solutions to meet the growing demand from corporate tenants. As the rental market continues to expand and diversify, corporates can leverage this trend to access a wide range of housing options tailored to their specific requirements. Through strategic partnerships and innovative solutions, Corporate Rentals is poised to capitalise on this opportunity to provide unparalleled housing solutions for its corporate clients.