Fall Market Update

There have been price increases in both the sales and rental market. Demand remains very high with very little quality stock. 

House prices  

According to Rightmove, prices in London have increased by 1.9% in October, making the total growth this year 2.6%. Demand is still very strong, with sales agreed being 23% above the 2017-19 average in September. Savills stated that, “over 1 million home sales had been recorded in 2021 by the end of August, a milestone we usually don’t reach until October. And we expect there to be more transactions in 2021 than in any year since the great financial crisis.”

While no one can accurately predict the future of the housing market, two of London’s leading agencies are predicting very strong growth in the next 5 years. Savills believe that values will be up 21.5% and Knight Frank have predicted 25%. The next few months could be a good buying opportunity ahead of the potential increase in prices. 

Rental prices 

Rental prices have rapidly increased over the last few months, reaching pre-pandemic levels in 2019. According to research done by TwentyCI, there are 60% less homes to rent than this time last year, an indication that prices will continue to increase. Foxtons have stated that they helped a record number of tenants in the third quarter. As London continues to ease lockdown restrictions, demand from foreign students, working professionals and corporate families will continue to increase. 

Ikea buys Topshop flagship store on Oxford Circus 

While these property updates usually focus on residential side of the industry, this is a major deal for real estate in London for both residential and commercial. Ikea bought the shop for £378 million, telling the Financial Times, “This is a top, top location and we very much believe in London and the UK in the long, long term . . . The UK is also interesting after Brexit. In the long run, we think it’s going to land in a good way here.” 

Interested in property in London?

If you are interested in buying a property in London, please get in touch here for a free consultation. There are currently a very limited supply of good homes and demand remains high. Using a buying agent is key in order to source the right property at the right price. As a buying agent, I have access to properties that aren’t on the open market and ensure that when properties do come on the market, I am first through the door. Here is more information about the benefits of using a buying agent.