The London Property Market in 2019
Following our breakfast event with Hugo Cox, property writer for The Times and Financial Times, here are our five key take outs when it comes to the London Property market in 2019.
London’s market remains bottom of the UK table (no surprise there).
After years of leading the way in terms of price increase London’s market continues to bump along at the bottom, despite tightening supply. Agent data shows that London has the longest average selling time in the UK; 70 days compared to just 44 days in Scotland.
New home completions peaked in Q1 of 2017 and have been falling since. But how long will it take for the lack of supply to influence a rise in prices?
Sign of a rental recovery
The prime central London lettings market has staged a recent recover, driven perhaps by the exodus of 100,000 plus buy to let landlords following the changes to the tax regime.
London Remains popular with Chinese investors
Chinese investors, particularly the middle classes have become more discerning, looking at growth markets such as Manchester and Leicester but London remains popular, particular for parents buying for children attending London Universities. The Chinese capital controls do not seem to be impacting on demand. Weak Stirling is also still a factor. Rising oil prices could also stoke demand form Middle Eastern buyers.
First time buyers are demanding more and being savvier on negotiations too
Encouraged by the experience of high quality student accommodation with a range of services many first time buyers are demanding more from their new property in terms of services and facilities. And they’re being much more savvy when it comes to negotiating discounts and a final price too.
But it’s bad news for the London apartment market
Agent data suggests the fall in property transaction volumes in 2018 was almost entirely accounted for by apartments under £1 million. Anecdotal evidence suggests that buyers are instead opting for larger homes in outer borough for the same price.
Our next property roundtable will see Guy Montague-Jones, Deputy Editor of Property Week leading a discussion on prospects for investors and developers in the commercial property market in the face of Brexit and other uncertainties.
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