With the property market in London, prices continue to recover post-lockdown. In areas with more family houses/apartments and outdoor spaces, prices have risen exponentially. In fact, in a location like Islington and Dulwich, demand is already outstripping supply.
International property firm, Knight Frank has commented that it has been no ordinary summer for London’s property market. Areas such as outer London are witnessing something of a price revival since their lockdown low point in April.
The recovery continues elsewhere. The month of July had recorded an increase from areas such as Wandsworth, Richmond, Dulwich, and Islington as families seek more outdoor spaces resulting in the demand increase. The value of the London property market rose by £5 million-plus as supply is comparatively less than demand and the ability of buyers in higher price brackets to make a quick purchase. Parts of London with more green space are now benefitting from the same effect.
“The problem is not enough supply of family houses in some parts of London,” said Tom Bill, head of UK residential research at Knight Frank. “Demand for outdoor space has surged and while we can’t know how long it will last, it means sealed bids for family houses are back.”
After lockdown was lifted, central London began its recovery, but not as expected. It saw an average price fall of 0.1% in July. Areas such as Mayfair, Knightsbridge, Kensington, Chelsea, and Notting Hill were relatively flat in July.
The number of offers accepted in the week ending 1 August was 132% higher than the five-year average. It was the biggest weekly increase since the market re-opened in mid-May and highlights how seasonal patterns of property activity have been changed by the Covid-19 pandemic.
Similarly, the number of new prospective buyers registering in London was 80% higher than the five-year average in the same week. Instructions to sell were up 40%.
Katherine O’Shea, from the Coutts Real Estate Investment Service, says the recent stamp duty change should be welcomed by those looking to get their first foothold on the property ladder.
“This short-term measure provides a great opportunity for all buyers and is a welcome development across the property market,” she says. “But it’s particularly good news for first-time buyers, who can struggle to come up with the money needed to get a property purchase over the line, and often need ‘the bank of mum and dad’.”
The trend overall in the London property market is showing promising results as lockdown was eased in London allowing prices to rise again. As life gets normal in the capital and once it sees out the pandemic fully, the price trends seem to be heading in the right direction.
If you are looking for safe investment and high yields, the London property market should be considered as one of the safest regions to do so.
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