The central London property market has experienced a number of years of difficulty recently, but now it seems that it is making a slow and steady recovery, with a recent report suggesting that the sales and property prices have improved. With changes to property buying over the last few years, such as the different changes to the Stamp Duty Land Tax, the property market has suffered.
However, according to a report released by Winkworth estate agents, the market has showed signs of improvement over the last 12 months, with an increase to the buying and selling of properties in London over Q1 of 2018. The report makes the suggestion that the London property market is meeting new demand set by the result of Brexit, with an increase to the number of domestic buyers, as well as a continued interest from China, Greece, Italy and Middle Eastern countries.
The Findings of the Report
The report highlights that there was an increase to sales in the first quarter of 2018 by 12.5% when compared to the previous year, although this is still a way off peak levels of 2014. In Q1 of 2014, transactions were 22% above the current levels. The central London property market has also seen a slight improvement to average property prices following consistency throughout 2017, with a 0.4% increase in Q1 of 2018, whilst the average square foot is up by 0.1% but still almost 15% down from 2014.
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It is also suggested that obtaining the asking price of properties has increased from Q1 of 2017, despite still being down on average from 2014, although steady increases to the market suggest that potential buyers have more desire to make purchases. The report also states that average viewings per sale are down when compared to averages in 2014, but this does suggest that buyers may be more committed and acting quicker to get their property.
London Property Market Activity
With Brexit nearing ever closer by the day, it appears that the market is somewhat in a state of confusion, leading to investors and other buyers holding back from making new purchases. This suggests that a large proportion of property transactions are likely to be from owner occupiers, with first-time buyers also making their mark on the property market below the £1 million mark.
With this in mind, it isn’t thought that property prices are going to change that much over the coming 12 months. This makes it very important for sellers to consider a realistic valuation of their property before placing it on the market, particularly as pricing is playing a key role in the property market. Properties with a realistic selling price are selling, whilst overpriced properties are not, suggesting the importance of pricing your property accurately. The market is thought to be remaining very consistent over the next 12 months, meaning that sellers should do as much as they can to sell their property.
Fletcher Day are a full-service commercial law firm based in Mayfair, London, with a dedicated team of commercial property lawyers in London who specialise in real estate financing, acquisitions and licensing laws.