When will the Central London Sales Market bounce back?
With Covid19 potentially a distant memory as we enter 2021, will the property market simply return to the pre pandemic normal?
When will the international students and overseas professionals return, the offices refill with workers, all of these factors have affected directly or indirectly the London property market. Brexit, the uncertainty in the job market (which will no doubt remain for the next couple of years), alongside the inevitable tax hikes to balance the deficit have left investors, landlords and developers questioning what the long term effects will be.
In Central London we have enjoyed several years of gradual increased property prices, however uncertainty brings fluctuations in the market.
Our GLP residential team saw a huge rise of clients requesting sales and letting valuations in November, with the majority of these properties coming onto the sales market. Landlords have been left with long void periods from the huge drop in the number of tenants searching, and alongside the new government regulations, renting out their property is simply not financially viable anymore.
Does this mean it is a buyer’s market?
With plenty of choice and prices at a competitive level (down 1.6% compared to 2019), is now a good time to consider purchasing in Central London? Interest rates are low and with the Stamp Duty break alongside the relaxed planning permissions, it is an investors dream.
The GLP Residential team are also seeing a growth in the pied-a-terre market, where left over cash from the sold family house is invested in a smaller apartment close to the office. We expect this to continue as more people choose to move out to non-commutable areas.
With the end of the pandemic is sight, there is definitely optimism in the air and interestingly a lot of the time this is simply all the property market needs for a boost. The ‘Boris Bounce’ we saw earlier in the year after the Conservative General Election, plus the explosion of house moves when the property market reopened in May - all created from optimism in the market.
With so many external factors influencing the market, nobody can truly predict what the post covid property market in Central London will look like. However, never before have buyers had the array of choice, the competitive prices alongside the government tax breaks.
These factors alone should inspire those looking to invest, to do so.
If you would like to talk through your options, please give our Residential Team a call on 0207 734 4062 and they can put you through the right person.