2021 will be a year of change, and with Brexit in place, it is reasonable for people to assume that interest in London and Great Britain will fall from overseas property buyers.
However, this might not be the case.
At Holmes Estate Agents, we have seen demand for property across South West London, even though the country has endured another lockdown.
Also, there has been interest from overseas parties, and this has been confirmed by a recent study.
People still want to invest in the UK
DLA Piper named the UK as the “top global property investment hotspot”. The international law firm spoke with 500 asset managers and high-net-worth investors, and 33% said they plan to invest in the UK in 2021.
Property investors based in the US and China classed the UK as the leading location for residential property investment.
Investors in Italy, Spain, France and Germany placed the UK as third-best place for property investment. Property investors in the UK also said the UK came third!
London remains appealing to overseas investors
Olaf Schmidt from DLA Piper comments: “The UK remains an attractive market for investment also post-Brexit which should provide confirmation and reassurance that the UK is a vital hub for activity and growth.”
The DLA Piper survey into the topic found that more than 50% of investors felt optimistic regarding the property investment market in Europe, while only 11% held negative opinions.
The most commonly cited reasons for the positivity amongst overseas buyers for UK property include:
Attractive property prices
Strong rental yields
High demand for property
A shortfall in the supply of property
A separate study indicates there is confidence and positivity amongst close to half of the BTL investors in the UK.
The research, carried out by Property Master, found only 10% plan to leave the sector in 2021 and close to 70% have no plans to sell their property.
So, we think there are reasons to be positive about the London housing market, especially South West London.
Towards the end of January 2021, Rightmove said this about Fulham house prices;
“Properties in Fulham had an overall average price of £1,110,208 over the last year. The majority of sales in Fulham during the last year were flats, selling for an average price of £801,708. Terraced properties sold for an average of £1,627,483, with semi-detached properties fetching £2,235,933.
Overall, sold prices in Fulham over the last year were 13% up on the previous year and 5% up on the 2016 peak of £1,052,580.”
Of course, South West London is home to many exciting and unique districts. To showcase the spread of property in the area, and more importantly, the area we cover, please note what Rightmove said about house prices in Streatham near the end of January 2021;
“Properties in Streatham had an overall average price of £544,969 over the last year.
The majority of sales in Streatham during the last year were flats, selling for an average price of £406,756. Terraced properties sold for an average of £630,239, with semi-detached properties fetching £882,008.
Overall, sold prices in Streatham over the last year were 4% up on the previous year and 6% up on the 2017 peak of £512,778.”
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.