Busy summer anticipated for London property market
With more Brits and a flurry of overseas nationals buying property in London, leading estate agents Cluttons predict that it could be a busy summer period for London’s property market. This could spell good news for vendors with property for sale in Richmond, property for sale in Pilmico and property for sale in Barnes, among other parts of the capital.
Despite the slowdown in the property market nationwide, demand for homes across London has strengthened in recent months, ensuring a greater volume of enquiries for properties in Barnes, Richmond, Pilmlico, Stockwell and Notting Hill, among other popular destinations. This growing demand looks set to continue and fuel the London property market over the summer, traditionally a quiet period for the housing market, with buyers conducting searches over the holidays in fear of missing out on a suitable property. JamesHyman, Partner for Residential Sales at Cluttons, said: "There is so much pent up demand in the market that competition for good property is as fierce as ever. Buyers are telling us they are wary of postponing their search over the holidays in case they miss out and will instead continue to actively look throughout July and most of August.” With Savills reporting that a total of £16.5 billion has been invested in the capital’s housing market by foreign property investors in the past five years, it comes as little surprise that more Brits are postponing their summer holidays to focus on buying property in London, with demand for property in Chelseathrough to property in Battersea continuing to rise. “There are more buyers coming from India and Pakistan than China – and they’re spending more,” said a recent Savills report. “This group is now the most important to the London market among the emerging economies.” Many Asian investors, for example, are attracted to London because the market looks ripe for growth. The city now offers better value than Beijing, Shanghai or Hong Kong, according to recent research by Knight Frank. A Knight Frank report said that with a budget of £400,000, someone could purchase a freehold house in London, but in Beijing you can’t even get a central apartment for that sort of money. “We’re forecasting 30 per cent growth over the next five years in property prices in London,” said Liam Bailey of Knight Frank. Property has long been considered to be a good investment, and with many pundits projecting future house price growth, now could be a particularly good time to invest in London’s property market.
John Elliott, Managing Director of house builder Millwood Designer Homes, says that with the cost of living continually rising, buying a new home could be "more of an investment than you think" and "now couldn't be a better time to buy". Elliot points out that with a national shortage of new homes being built there is insufficient supply to meet demand. House builders are constructing fewer new homes now than at any time since 1923 and inevitably this shortage will causehouse prices to rise. In fact, new data from the Land Registry, widely considered to be one of the more reliable barometers of house prices, shows that house prices fell in every region of England and Wales except London in May. Average London property values rose by 2.9 per cent against an average nationwide decline of 0.4 per cent in May. The Land Registry figures clearly illustrate the pressing need for more homes in London, suggesting that prices will rise further in the capital, as demand continues to grow. Source: Marsh & Parsons – Property for Sale in Stockwell , Chelsea, Notting Hill