Is prime central London bouncing back?

For the first time since the start of COVID-19, London feels like it’s coming back to life. Walking down Oxford Street 6 months ago was a ghost town. If you take a trip down Oxford Street today, you are back to bumping shoulders with fellow shoppers and tourists. As covid restrictions ease, more and more tourists are coming to London. 

I have received more interest in the last month from foreign buyers than I have had since the outbreak. Traffic is also up digitally, with Knight Frank reporting that the number of buyers and tenants searching for homes has hit pre pandemic levels. 17% of property searches in June last year were from abroad, compared to a 25% this past June. This could be a sign that foreign buyers are coming back to buy, potentially leading to increased values in prime central London. 

Regarding rental prices, Savills have also reported that rental prices in Prime Central London (PCL) have recorded the strongest quarter since March 2011. This is due to workers returning to offices and the opening of international travel. According to The Property Industry Eye, “Higher demand from renters has pushed prime central London rental growth up by 3.6% on the quarter, surpassing quarterly growth in the prime commuter belt. Also not seen since before the pandemic.”

In terms of property values in PLC, there are predictions that the property values could increase by 2%-3% by the end of the year. During the worst of the pandemic, some areas in London were down by as much as 20%. This could present a great opportunity to purchase a home in PCL, ahead of a potential upward trend. Using a property buying agent is key to securing the right home – find out why here. 

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