Home Property London property market shows resilience

London property market shows resilience

by LLP Reporter
15th Jan 20 1:37 pm

The latest TwentyCi Property & Homemover Report for Q4 2019  the most comprehensive real time review of the UK housing market shows a ‘resilient’ London property market with a modest 2% overall growth in London year on year to December 2019.

Overall across the London regions, there is a mixed picture with some areas seeing a slight fall in average asking prices, and others a small increase.

With Brexit on track for 31 January 2020, combined with a new period of political stability, it is anticipated that the foreign investment that has fuelled the London property market is to return more widely, driving momentum and price growth back into the capital.

Colin Bradshaw, Chief Customer Officer, TwentyCi said, “The unprecedented turmoil of 2019 has demonstrated the resilience of the London property market with transaction volumes and average prices remaining remarkably stable against a back drop of political upheaval and economic threats. With Brexit now planned for later this month, we’re likely to see a larger boost in London compared to the overall slow-moving property market of 2019.

Average asking price

London area Average asking price – Q4 2019 Difference in last year
London E £544,475 -1%
London EC £1,320,571 0%
London N £731,042 3%
London NW £1,036,759 7%
London SE £547,908 -4%
London SW £1,135,069 3%
London W £1,421,657 8%
London WC £1,332,504 -9%

The London NW, W and WC areas represent 343k, 409k and just 48k properties respectively.

London sales Vs rent

Properties available for rent continue to be in higher supply than available housing stock for sale in Q4 2019, as in earlier quarters. With high average asking prices for London property, the rental market continues to be driven by those priced out of the buying process.

London area Available housing stock – rental % Q4 2019 Available housing stock – sales % Q4 2019
London E 71% 29%
London EC 77% 23%
London N 72% 28%
London NW 78% 22%
London SE 66% 34%
London SW 74% 26%
London W 78% 22%
London WC 83% 17%

 

Middle England to drive the ‘Boris bounce’

The much anticipated ‘Boris bounce’ is yet to materialise in the first weeks of 2020. However, with consumer confidence reported as up and Brexit confirmed for the end of January, many property analysts expect the first quarter to see an uplift in the level of transactions. In particular if caution subsides within the power house of the property market of ‘Middle England, Middle Income’ a significant and material change to the market could occur in a relatively short space of time.

 Bradshaw added, “The value of Homemovers to the UK economy exceeds £12bn per annum on expenditure on the home outside of the transaction. Enabling this high value consumer audience through political stability, property affordability and stock availability will be an essential pillar to fuel the UK economy and boost retail confidence.”

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