What is Happening to The London Sales Market?
Rob Hill - Director at Greater London Properties provides an insight into what we can expect from the Central London Sales Market in the upcoming months..
It is no secret that the UK economy is on a downturn with many factors influencing the bleak forecast ahead. The six-o clock news is flooded with doomsday reports about inflation, rising interest rates and the impact of the war in Ukraine. Those with investments in the stock market have seen share prices drop dramatically, even it seems the usually bullet proof government bonds are losing value.
So where does this leave the London Property Market?
Rising energy prices compounded with the increasing inflation means banks would rather raise interest rates potentially faster than anticipated which is where the Property Market can become affected. It follows that potentially with both these factors in play, the property industry may not be considered as lucrative as in previous years. At GLP, we do not feel this is the case. With the labour market remaining strong in Central London, whilst prices may not increase, there is no reason to believe they will drop; therefore, it would be wrong to speculate the end of a ‘sellers’ market.’ Plus from an investment perspective, rental values are higher than they have ever been and there remains an insatiable demand.
There has never been just one property market in the UK, and it is important to look locally. Like any big country, the UK has huge regional difference and this feeds into the property market as well.
Centrally we have seen house price growth as well as buyer demand as people have flocked back to the city and restrictions have lifted. Land Registry reported a growth in London prices of 5.5% in December 21, and although this is behind the national growth, we must consider that the average house price in London is nearly double that of the national average.
In March this year our Sales Team at GLP recorded the largest increase in buyer enquiries and this continues moving into summer. However, Property Valuations have dropped off slightly as people start to organise their summer plans which often means leaving the city for weeks. In fact, a recent article published by Rightmove showed there were more than double the number of buyers to sellers.
“The London Sales Market is never boring, and this year is no exception. In terms of the current reduction in properties on the market, I think the market will balance more evenly in the second half of the year, but I have no doubts that demand will still outstrip supply. With this in mind, I am encouraging all our vendors who are on the fence in terms of selling to do so now. The buyers we are getting are not window shopping, they are fully prepared with mortgages in place to move asap – music to any estate agents’ ears. Since the beginning of the year we are also seeing more of our landlords approaching us for Sales advice as they see capital gains (and other relevant) taxes potentially rising towards the end of the year
Prices are changing weekly so it is imperative to have an updated Property Valuation so please do contact either myself or my team at Greater London Properties."
Our team are experts in Central London covering the multiple villages that make up our capital. Please do give us a call today and we can book you in for a Valuation.
We are also offering Legal Sales Pack free for all our Vendors plus a professional clean throughout your property prior to photography and videos.
As always, we look forward to hearing from you.
Warm Regards
Rob Hill, Director