It goes without saying that the last year of uncertainty amid interest rate hikes has had an instrumental impact on the real estate market. Whilst we expect the interest rate to have finally hit its peak, here is our outlook on the buying market and the shift we’re seeing in prime central London.
In a period that is traditionally one of the busiest times of the year, as we enter the autumn market, we are optimistic that London stock levels will improve, and this will continue for the remainder of 2023 into 2024. Whilst we expect house prices to further reduce elsewhere in the country, the average sale price of London prime properties has shown resilience throughout the past year, and we expect this to continue.
There is greater demand than usual from clients for turn-key properties – the appetite for ‘projects’ is low, so clients looking for a recently refurbished property in prime central London could really benefit from a buying agent. Often, we get access to these properties before they hit the open market and given that demand is outstripping supply, gaining that advantage will be crucial to being able to get the right property, in the right area at the right price.
We’ve also seen an increased demand for pied-à-terre properties in the capital as the shift to more permanent hybrid working patterns continues. I recently acted for a US client who was looking for a pied-à-terre. We helped them purchase an apartment in Knightsbridge’s most sought-after garden square address, right in the heart of the action, meeting their needs and giving them the perfect home from home.
We’re also seeing a higher than average number of clients who currently rent but are deciding to buy. Unsurprisingly, rising rent prices in London are pushing some buyers to consider the trade-off between paying rent or buying a property and absorb the Stamp Duty – especially if they intend to extend their stay in London. Regarding other London hotspots, Marylebone, Chelsea, and Notting Hill continue to be popular choices amongst my client base, but London villages are also desirable. Locations like Wimbledon, Clapham, Barnes and Chiswick offer clients a short commute to the office with plenty of family activities on their doorstep.
As buying specialists, our local knowledge is critical if a buyer is searching for something particular. We can target specific houses. If the buyers are looking in a defined area, we will often already know the houses; if we don’t, we make approaches.
Buoying the stock levels for the rest of the year are those facing re-mortgaging who will assess their options on whether to hold on to a large family house, downsize or sell a second property. Add to this the uncertainty of a general election in 2024 and the Labour Party proposing to charge VAT on independent school fees, we may see vendors choosing to leave London in search of areas with excellent grammar schools.
In conclusion, with London and prime central London readying for a busy Q4, getting the right advice and expertise from an experienced buying agent is a wise decision. Get in touch with me here if you would like to carry on the conversation.
