It is fair to say 2021 is already shaping up as an interesting year. While the housing market has started in a robust manner, even during a lockdown, there are concerns as to how long this will last.
Across the country, the supply of homes to the market is falling, with demand outstripping the supply of property.
However, this isn’t the case in the capital. In many areas of London, the supply of homes is rising; and this is an indicator people are looking to leave London.
There has been considerable media focus about people leaving the capital. There are certainly people looking for a more rural setting, but it isn’t the full story. A lot of people are looking to move out of Inner London, but they are making their way to Outer London.
Stay in touch with London property market
There is a lot going on with the housing market right now, and it is helpful to stay in touch with the latest studies from trusted sources.
The most recent figures from Halifax suggest that the January property prices have suffered the most significant fall since the drop of April last year. That period saw the housing market grind to a halt in the initial lockdown.
New research from Rentround has examined areas in London where price reductions have occurred, and the level of price drop.
The most significant percentage reductions have occurred by Holland Park. There has been an average fall of 24% for property pricing here.
As you might expect, Kensington and Chelsea has been badly affected, with the following areas also seeing a fall in property prices:
Hyde Park Corner
In the study, a total of 37 properties in Paddington saw their price reduced, Lisson Grove had 31 properties and Marylebone saw 30 properties see their initial asking price reduced.
Some areas are more badly affected than others
Raj Dosanjh, Rentround founder, comments: “The property market is on edge at the moment. The stamp duty holiday duration, end of furlough, Brexit and working from home practices are creating a real risk to London property prices and rental amounts. It's unclear if the news from Halifax warrants panic at this stage, or if it's just a blip. Nevertheless, it's another thing to worry about for London property owners & landlords.”
Raj continued by saying; “The price reductions appear to be centred towards the West & North West of London, which will worry property owners & landlords in those areas. In parallel to this news, January saw the highest number of London landlords using our platform to compare letting agents fees & services.”
Raj concluded by saying; “Our data shows that guaranteed rent is a service in demand. Searches for this service increased by 22% over the last quarter, indicating landlords are looking to lock in some of their rental income. However, many letting agents on Rentround have pulled back their guaranteed rent services or increased their prices. Landlords looking to obtain the security this service provides in the midst of worker migrations out of London (which will impact rental income), may find it difficult.”
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.