What’s really going on in the London property market?
Just months after the summer referendum vote, the UK property market is showing signs of stability.
Immediate shocks were an inevitability, but what the past few months have demonstrated is that the resilience of UK property markets shouldn’t be underestimated. Having said that, a small cloud continues to float above the capital that has changed market behaviour throughout 2016. Independent West London property specialist, Shaws Kensington, discuss current trends, advice and shift since 2015.
London lettings
Since the stamp duty surcharge in April, activity in the lettings sector has shifted dramatically. Lettings agencies and renters in the city have had a busy couple of months, with plenty of rolling news to consider.
What are buyers looking for?
Today’s renters are certainly looking for slightly cheaper property options, with one-bed and two-bed flats becoming a major target for every buyer demographic. Renters are still drawn to the London property market as the city keeps ticking. Despite high demand in the sector, prices haven’t been affected by this year’s biggest events, which we discuss below.
What has changed since 2015?
The stamp duty increase in April was a real turning point in the industry, Lettings Manager Olivia Sloan explains. A large majority of buy-to-let landlords have become more inclined to let rather than sell which flooded the market with rental properties and new landlords looking to capitalise on the market. Compared to the London sales market, the lettings industry has continued to be, on the whole, more positive, and early predictions indicate that interest and appeal in the buy-to-let sector will be sustained through to 2017.
Current advice for renters:
Now is a great time to look for a rental property in London, while prices are slightly lower and there is less footfall on the ground. Landlords are keen to let, and are offering good deals that cater to a wider range of budgetary requirements. The most important piece of advice that we can give to renters in the current environment is to move quickly: if you see a property that is for you, there’s now less time to deliberate your options. We’re all feeling a real sense of urgency in the market, but reports remain mixed about how long these good market conditions will continue for renters.
London sales
The 3% stamp duty hike this April has been as much of an issue as Brexit in the buyers’ and sellers’ market, but again, London property has remained a leading global asset despite setbacks early in the year, and again in the summer. Since July, international investment has become even more of a prominent feature in our West London areas.
What are buyers looking for?
Sales Director Alexandra Masson has noticed a different set of London trends. The market remains mixed in terms of who is buying and what properties are sought after. What has become a slight trend, however, is a slight reduction in the number of buy-to-let investments, with owner occupier property accounting for the majority of the present market.
What has changed since 2015?
It’s no secret that London house prices have risen dramatically over the past three to five years. The team felt a slight sense of hesitation in the lead up to the general election (as is usually the case), and we did notice another wave of reluctance to either sell or search current listings immediately after the vote this June, but activity soon began to pick up by the end of August once the summer holiday season started to lull and confidence improved once again.
Current advice:
Again, current reports on when the overall London market will pick up momentum again remains mixed; it could be from a few months to a few years. Like the lettings sector, sales teams are reiterating a sense of urgency to property investors and buyers looking to upsize to take advantage of lower prices and less competition. There is potential to buy more for your money, and with the help of an area specialist, buyers may be able to get a better-than-expected deal.
Shaws Kensington is a boutique property agency with a team of industry specialists that live and work in our area of West London. Call now on 0207 3869996 to discuss your individual requirements
