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Strong demand for London property from buyers continues

While Covid 19 uncertainty was a real concern for the London residential property market at the start of last year, demand did in fact remain strong.  In 2022 we expect this resilience to continue.  Sellers have been in contact with us over the last few weeks as they make plans to put their properties on the market and there is a real feeling of positivity.

So as we move through January, we are seeing enquiry levels increasing already after the quieter Christmas period while valuation requests are coming in now too. Overseas investors lead the way with ultra-high-net-worth individuals making a resurgence into central London again. Stock levels remain lower than we would like though, so all of our sales teams would like to take new instructions if you are considering putting your property on the market in the next few months.

Enquiry levels for January already back to 2019 levels

Momentum is building although clearly this will take a several weeks to translate into the number of transactions completing.  Many buyers have been planning ahead for some time, researching the market to find a property that meets their requirements.  And their wish list will almost certainly have changed over the last couple of years.

For the domestic market, the ‘race for space’ (in order to work from home) and the desire for outdoor space, will be trending for some time.

Key drivers pushing demand

Of course, the temporary Stamp Duty relief, which dominated the property headlines in 2021, was only part of the story.  Arguably, other key factors were more important in London, where property prices are higher, so the ‘holiday period’ had less impact.  And these other factors will remain crucial in 2022.

Affordable mortgage loads remain a driving force

The relative affordability of borrowing, thanks to record-low interest rates, is also very important, and we expect that even a modest increase in interest rates in 2022, is unlikely to have any significant impact on demand.  In fact, if slightly higher interest rates calm the market a little, then we should see renewed interest from investors and homebuyers who have been deterred recently by the intense competition amongst buyers.

Sterling remains relatively weak

For overseas buyers the continuing weakness of sterling is another driving force.  Demand from international buyers has been building for several months now and we’ve seen a further increase in enquiries in the first two weeks of January.  Investors are researching the market online but they are also now planning to visit London to view properties, perhaps for the first time in a couple of years, as international travel becomes easier and restrictions are lifted.  Overseas buyers are now looking to expand their London buy-to-let property portfolios or to invest in a pied-a-terre in the UK Capital which can provide many good uses.

We are handling a number of enquiries from investors in South East Asia (both new and existing clients) who aim to hit the ground running this year and take advantage of favourable exchange rates.

Contact us for a free market appraisal of your property

As 2022 looks set to be a return to normality for the London residential property market and with pent-up demand still driving enquiries, this buoyant market makes it an excellent time to put your apartment or house on the market. We are urgently in need of new instructions to meet growing demand.

Get in touch with our Sales team who will be able to provide a free market appraisal of your property with no obligation.

READ MORE: London Property Prices Predicted to See Uplift in 2022

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About the Author

Philip has been working within the property industry for 15 plus years with experience gained across several different divisions of property sales. In his role as Manager of New Homes and Residential Development, Philip specialises in driving business for off-plan sales and new homes to achieve the investment goals of many domestic and international clients. - Read full profile

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