The inner London property market is down, but certainly not out, according to the latest research from London lettings and estate agent, Benham and Reeves.
Benham and Reeves analysed all residential property transactions to have taken place since we entered the first lockdown (23.03.2020) and how the capital is performing when split between inner and outer London.
The figures show that there have been just shy of 50,000 sales completed across the capital in this time, with homesellers securing an average of £487,500 in the process.
Months on end of lockdown restrictions have caused many to look from the inside out for bigger homes with the additional benefit of outdoor space, a trend that is apparent when you dissect the London market at a top-line level.
Since March of last year, there have been 65% more property sales across the capital’s peripheral boroughs compared to the number completed in inner London. just 38% of all transactions (18,459) have taken place in inner London, while outer London accounts for 62% (30,494).
However, scratch beneath the surface of this top-line trend and it’s clear that inner London is far from out of favour. While transactions level may be trailing, properties in inner London have sold for an average of £595,000 since lockdown, 34% more than sales transacting in outer London.
When breaking the market down to postcode level, it’s perhaps surprising to see that just two of the top 10 busiest property postcodes since we entered into lockdown are located in outer London.
The CR0 postcode of Croydon and Sutton has seen the most homes sold with 894 completed transactions, demonstrating the homebuyer appetite for homes in outer London. E17 in Waltham Forest also places in the top 10 (5th), with 584 homes sold since lockdown started.
In contrast, the City of London has seen just 35 transactions complete across its busiest postcode of EC2Y.
However, while the City has seen a slump, inner London accounts for four of the top 10 busiest London property postcodes since lockdown began. E14 in Tower Hamlets is the busiest of the lot, seeing the second largest number of transactions (759) across the whole of London since March of last year.
SW18 (622) and SW11 (614) in Wandsworth rank as the third and fourth busiest overall, while SW6 in Hammersmith and Fulham also makes the top 10 with 518 homes sold.
It’s clear that homebuyers are also keen for a compromise, with the SW19, SW16, SW17 and SE10 postcodes all ranking in the top 10, and all sitting on the border of inner and outer London.
Director of Benham and Reeves, Marc von Grundherr, commented: “There’s no doubting that the unprecedented events of the last year have spurred many homebuyers to reevaluate their property priorities, opting for larger homes on the outskirts of the capital and beyond.
This trend has led to the false assumption that inner London has lost its desirability and that buyer demand has evaporated completely. This simply isn’t the case and, in fact, parts of the inner London market have been performing very well since lockdown restrictions were imposed.
As the capital starts to reopen for business, it is inevitable that demand for central London homes will continue to spread.
An interesting trend that is also emerging is the choice by London buyers to sit on the geographical fence, opting for areas that fall on the borders of inner and outer London. This allows them to secure the larger home they seek for a lower price, but without completing forsaking the ability to commute across London with ease.”