Is It A Good Time To Buy Property In Central London?
There’s no denying that housing values in central London have struggled in recent months, with prime property apparently falling by 10% on average since the pandemic began. Things are looking good for the market now that there is a light at the end of the tunnel thanks to a successful vaccination distribution and a route out of what we believe will be our final lockdown. This has got more people interested in buying property and search for apartments to buy in Central London steadily increased.
What went up must come down, they say. When it comes to the property market, however, especially in Prime Central London, what goes down usually goes up. Estate agents in Central London agree that there has been a period where sales prices have fallen, particularly in the last year as a result of the shutdown and the pandemic. People have been forced to stay at home, businesses have witnessed a – probably temporary – shift away from the office in favour of remote working, and travel has ceased, thus London’s footfall inevitably decreased dramatically.
Properties in Central London
London, being the world’s second-largest financial centre after New York, was certain to suffer from the impacts of the lockdown and, arguably, the much quicker surge of home values in the decade prior. According to recent data, the knock-on effect has been a substantial decline in prices across Prime Central London, averaging 10%. Although this has not been the case across the board, there have been some postcodes that have defied the trend, and there have also been desirable regions that have seen price declines of up to 40%.
Although this has not been across the board there have been some postcodes that have bucked the trend, likewise, there have been prime areas that have suffered more significant price drops – reportedly up to 40%. But is this likely to change? The latest UK residential market forecast predicts a relatively modest, yet positive 3% growth across 2021, rising to 7% growth in 2022 and 21.6% growth on average over the next five years. It is because activity in the market is gaining pace and is likely to escalate in line with increased economic and general activity as we emerge from the pandemic.
Market Activity 2020-2021
The forecast increased market competition, which was obviously absent at the onset of the pandemic. Because of its substantially larger capital growth potential, prime property in central London is frequently viewed as both an investment and a house buy. As a result, when prices fall, the market becomes a great place to invest. You’d be forgiven for believing there’s been little action in the last year, yet that couldn’t be further from the truth.
With property prices at an all-time low, it’s the ideal playground for savvy investors, including most high-net-worth individuals, making it a buyers’ market. The potential for growth is at its peak while prices are low. As a result, market activity has exploded in the second half of 2020 and into 2021. Since February, new buyer registrations for the Prime Central London market have climbed by 13%, while viewings have increased by 23%.
Especially with the stamp duty increase for overseas buyers taking effect, it is unlikely to be a disincentive to buyers from anywhere in the world because UK property, even premium central London property, remains one of the more affordable markets when compared to comparable markets across the world. So, if you’re looking to buy in excellent central London, now is the moment.
What is the best – and worst – time of year to buy a house?
Spring is often an excellent season to buy a house because there are more properties on the market. March is an excellent month to buy a house because the days are getting longer and the weather is getting warmer. If you want to sell quickly, put your house on the market around March when there are more people looking for homes. People are frequently eager to finish before everyone goes on vacation for the summer, which makes August particularly quiet. During September and October, the number of listings (or buying possibilities) increases, before decreasing towards the end of the year. Homeowners in this area are more likely to stay put for the holidays. The worst months to sell are August and December.