{"id":20905,"date":"2022-07-04T05:37:54","date_gmt":"2022-07-04T04:37:54","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=20905"},"modified":"2024-07-22T08:55:52","modified_gmt":"2024-07-22T07:55:52","slug":"buyer-confidence-remains-high-as-demand-for-london-properties-grows","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/property-sales-market\/buyer-confidence-remains-high-as-demand-for-london-properties-grows\/","title":{"rendered":"Buyer confidence remains high as demand for London properties grows"},"content":{"rendered":"

\"Shoreditch-towards-City-skyline\"There\u2019s a sense of optimism in the London property market right now, with demand from buyers strong, despite uncertainty caused by interest rate rises and the increasing cost of living.\u00a0 Yet confidence remains high and these issues don\u2019t seem to be detracting from the desire to buy a property in London<\/a>.<\/p>\n

Enquiry levels at our London estate agents\u2019 branches<\/a> are increasing at a rapid pace which is in turn leading to more viewings, more offers and so more transactions being concluded.\u00a0 And thankfully, we are now receiving more new instructions which is helping to rebalance the equilibrium between supply and demand.\u00a0 Although we always need more new instructions as enquiries gather pace.<\/p>\n

Londoners creating a new work\/life balance post-pandemic<\/h2>\n

Some of this increased activity is the consequence of our return to \u2018normal\u2019 and our desire to create a new lifestyle for ourselves following two years of pandemic restrictions.\u00a0 What we want from our homes has changed and continues to evolve.\u00a0 Equally, rising interest rates mean buyers are keen to lock into fixed rate mortgage deals now, before they are withdrawn and rates increase.<\/p>\n

So the market is busy but it feels a lot more stable now than it did in the first half of 2021 when many people were still nervous after recurrent lockdowns and continuing travel restrictions.<\/p>\n

The leap in confidence is tangible.\u00a0 And this has filtered through to an increase in sales.\u00a0 The summer months are always our busiest, particularly June and July, and we\u2019re seeing many sellers looking to put their homes on the market to take advantage of this buoyant summer season.<\/p>\n

As the number of potential buyers registering with us continues to increase, we are always looking for new instructions.\u00a0 Please get in touch<\/a> with your nearest Benham and Reeves branch if you\u2019d like to discuss selling your property<\/a>.<\/p>\n

International buyers flock back to the London property market<\/h2>\n

\"buyers-from-india\"We\u2019re seeing a noticeable increase in the number of international clients we\u2019re working with at the moment. We\u2019re carrying out more property tours with clients visiting the UK in person \u2013 some returning after nearly three years away.\u00a0 Recently we\u2019ve been working with buyers from India, Malaysia and Hong Kong and they\u2019re keen to resume property tours in person again.\u00a0 Budgets vary enormously, ranging from \u00a3500k for a buy-to-let investor looking to add a new flat to their portfolio, to \u00a310m for one High Net Worth individual looking for a stunning London home as their main residence.<\/p>\n

Buy-to-let hotspots on London\u2019s fringes<\/h2>\n

Buy-to-let investors looking to maximise rental yields are continuing to expand their portfolios by buying in smart, new developments<\/a> in previously overlooked areas.\u00a0 We\u2019ve been carrying out viewings with a number of overseas clients who are rebalancing their portfolios, often now choosing to buy in Zone 4, either to the west or east of central London, where prices are lower and so higher rental yields can be achieved.<\/p>\n

Popular developments include The Horlicks Quarter in Slough<\/a>, The Green Quarter in Southall<\/a> and Hayes Village<\/a>.\u00a0 These developments are extremely popular with renters, so flats here let quickly, with virtually no voids, achieving excellent rental yields of typically up to 4%.\u00a0 Other West London residential developments attracting a lot of interest from investors include Western Circus in Acton<\/a> and Watkin Road in Wembley<\/a>. \u00a0\u00a0In East London, Upton Gardens in East Ham is also very popular.<\/p>\n

Crossrail launch boosts sales enquiries<\/h2>\n

\"CrossrailThe recent launch of the Elizabeth Line (Crossrail) has been transforming many areas of London, as we\u2019ve recently reported.\u00a0 Read more at:\u00a0 Millions in London are feeling the \u201cCrossrail Effect\u201d (benhams.com)<\/a><\/p>\n

And the new rail line has created a further buzz amongst buyers keen to tap into strong rental demand now that journey times have been slashed along its path. Royal Arsenal Riverside<\/a> in Woolwich is a prime example \u2013 a real hotspot for both buyers and renters.\u00a0 We\u2019ve been seeing growing demand here from both homeowners and buy-to-let investors.<\/p>\n

A lack of available stock<\/h2>\n

While enquiry levels continue to increase and there is certainly no shortage of buyers, there is still a severe lack of stock in London, despite recent completions now taking place after a couple of years of delays in some cases.<\/p>\n

This lack of stock means that the gap between asking prices and sold prices<\/a> is narrowing.\u00a0 In London, the gap between the average sold price (\u00a3524,570) and the average asking price (\u00a3653,333) fell to just -19.7% during the first quarter of 2022, according to recent research we\u2019ve carried out.\u00a0 This is the smallest gap between seller expectations and buyer intent, bar one, since we first started carrying out this type of research in 2018.<\/p>\n

Read our research in detail: Stock shortage sees asking to sold price gap close to record low (benhams.com)<\/a><\/p>\n

So this suggests that while sellers will tend to overprice their property a little when they put it on the market, in order to leave room for negotiation, buyers are prepared to pay a little more to secure their chosen property in this busy market.\u00a0 Good news for sellers!<\/p>\n

Prime London property market bounces back<\/h2>\n

\"PrimeMeanwhile, our latest property market analysis reveals that the prime London property market, that is properties valued from \u00a32m – \u00a310m, bounced back in Q2, with homebuyer demand rising by 1% in the second quarter of the year (reversing a decline in Q1) but also up 1% on an annual basis.<\/p>\n

Read more at:\u00a0 Prime London property market bounces back as homebuyers return in Q2 (benhams.com)<\/a><\/p>\n

Helping investors plan their next purchase<\/h2>\n

Many overseas investors may not be up to speed with how dramatically the London skyline has changed over the last few years.\u00a0 New areas of regeneration, those close to Crossrail stations as well as other areas, are now in very high demand by London\u2019s professionals so make ideal locations for those building a property portfolio seeking both rental income and potential capital growth.<\/p>\n

So one of our key roles is to help clients assess the overall picture when they are planning their next property purchase in London.\u00a0 Some have specific areas and types of property in mind while others welcome specialist advice on areas that meet their investment criteria.<\/p>\n

If you are planning a buying trip to London over the next few months, please get in touch<\/a> with our team of estate agents and advisers who can plan a property search<\/a> with you to make sure you get the most out of your trip.<\/p>\n

Contact us for a free market appraisal of your London property<\/h2>\n

This is one of the busiest times of year for London property sales and we are still very short of new instructions, so contact our sales team to arrange a free market appraisal of your property<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a sense of optimism in the London property market right now, with demand from buyers strong, despite uncertainty caused by interest rate rises and the increasing cost of living. Yet confidence remains high and these issues don\u2019t seem to be detracting from the desire to buy a property in London.<\/p>\n","protected":false},"author":1001032,"featured_media":20906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[451,452],"tags":[],"class_list":["post-20905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-london-property-market","category-property-sales-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/1001032"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=20905"}],"version-history":[{"count":6,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20905\/revisions"}],"predecessor-version":[{"id":23494,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20905\/revisions\/23494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/20906"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=20905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=20905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=20905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}