End of summer

As the summer ends and the world hopefully continues to normalise after the pandemic, a study by Knight Frank shows that more buyers and tenants could be ready to enter the UK housing market. Nearly a quarter of their web traffic looking at properties to rent or buy were based outside the UK, the highest figure since January 2020. This is probably due to the return of overseas corporate tenants/buyers as well as overseas students coming for the academic year. 

This could have a significant effect in the prime central London housing market, which has historically been fuelled by foreign demand. The lack of foreign buyers since the start of the pandemic has caused a significant decrease in demand for prime central flats with no outside space, so this could be a good buying opportunity before that demand returns. The prediction for prime central prices by Knight Frank states that prices by the end of the year will be 2% higher, increasing to 7% in 2022. Berkeley Homes, one of the country’s largest developers, is also in agreement that the London market is improving. They recently stated that “there is a gradual firming of the London market”, as travel restrictions continue to ease. 

Although the summer months have passed (normally the busiest time of the year for transactions), the demand still remains above supply, which will continue to increase prices according to Savills. Homes that are good quality and well-priced sell very quickly, with or without outdoor space. This is the biggest challenge that I am experiencing with both tenants and buyers. A great example of this is with recent clients of mine, who bought a fantastic apartment in a period building in Paddington. I had been searching on their behalf for a few months, however there was a lack of quality stock. When the flat hit the market, I made sure I was first through the door. We offered a day later based on a mortgage, competing against a cash buyer (preferred by sellers for deal certainty). Through careful negotiations we secured the flat, even though the cash buyer returned a few weeks later with a larger offer. 

If you are interested in purchasing or renting a home in London, please get in touch for a free consultation. Find out why you should use a property buying consultant here

Iyad Grahne