Prime Central London Sales Market:
The sales market for properties priced £10m-100m is slowly recovering. We have noticed more enquiries in the last two months since the successful rate of Covid vaccination across the UK.
The UK has done the best in terms of vaccinating its population quicker than the rest of the countries nearest to us in the EU, Russia, USA. In addition, the UK has continued to conduct sales viewings during the all lockdowns over the last 12 months or so. Therefore, this has lead to a quicker bounce back in prime central London properties.
It is still a slow recovery, however, as many of the buyers viewing are British based. There are still many International Buyers who are not travelling to UK until next month onwards. After which, the 11 day hotel isolation period (when landing in UK) should be fully abolished.
Prices in prime central London have decreased by approximately 12-15% over the last 3 years due to Brexit & Covid. However, we have seen an increase in demand recently due to the full break from EU & successful vaccination programme.
Prices are now expected to increase by approximately 5% over the next 3 years. Slow but positive.
Prime Central London Rental Market:
The rental market has been fairly consistent throughout the last 12 months during Covid, however, there has been a decrease in prices of approximately 8-10%.
This is due to many tenants simply extending their tenancies and not wanting to move during the Covid outbreak. With fewer potential tenants searching for properties on the market, Landlord’s have experienced empty void periods. Therefore, they have had to reduce rental prices in order to make their properties attractive to a smaller compressed market.
However, mirroring the above, as vaccination has been so successful here in UK, the rental market in prime central London has picked up again in the last 2 months. With this in mind, Landlords are now starting to receive more demand for their properties, so as expected, prices are starting to rise again. This should result in rental prices increasing 5-6% over the next 12-18 months.
Overall, the whole market is looking more positive now, demand is slowly increasing again. Buyers & Tenants are savvy, they know many owners have decreased their prices over the last 12 months. Therefore, many are in the market solely to get themselves a really good deal on a property they have been watching for a few years now.
Soon overseas International Buyers are coming back to London, especially buyers from Hong Kong, China, India, Qatar, Saudi, Dubai, and USA. This should accelerate the UK property market prices.