Recently, the London property market has picked up pace with a rise in demand from both buyers and tenants. What does this mean for the sector?
In the past few years, the London property market has been the most susceptible to fluctuations affected by the UK’s economic and political situation. With the uncertainty due to the COVID-19 pandemic, 2020 was a challenging year for the sector. However, the London property market picked up pace in 2021 with a particularly strong performance in March.
The stamp duty holiday extension and easing of lockdown restrictions has brought the London property market to life. Additionally, with more confidence returning to the sector, more buyers are viewing properties. And more sellers are putting their property onto the market.
Strong buyer demand
Data from estate and lettings agency Chestertons reveals there was a 57% rise in the number of people looking to buy in the capital from February to March. Additionally, there was a 39% increase in property viewings and 28% increase in offers made by buyers.
Across the UK, there has been a widening gap in supply and demand. However, in London, there has been a 40% rise in new properties coming onto the market. This is helping keep up with the strong buyer demand. Additionally, if this continues, house prices will likely remain stable.
How long are property transactions taking?
With the strong demand in the property market, this is causing property transactions to take longer than usual. This is being fuelled by many buyers hoping to beat the stamp duty holiday deadline. Professionals in the property industry, especially conveyancers, are feeling the pressure.
In Greater London, house sale transactions are taking an average of 108.25 days to complete over the past year, according to Property Solvers. The data included analysing more than 9,601 property sales between April 2020 and April 2021. And this research shows some areas are selling much quicker than this average.
Rising demand in the lettings sector
Last year, rent across the capital decreased significantly. This is predominantly down to some tenants facing financial difficulties and job uncertainty due to redundancy and furlough. Additionally, with the rise in remote working, some tenants looked to move out of the capital. This caused supply in the private rented sector to increase substantially last year.