Now that we are into March, people are looking to see how 2021 is performing in the housing market.
At Stones Residential, we know the start of this year has been challenging.
Yes, the housing market has remained open, but the lockdown process has stifled activity. Many homeowners have decided now is not the right time to sell, and even buyers are cautious about the market.
Property moves are taking place
However, the market is still moving, and industry observers believe there will be an opportunity for buyers and vendors to connect this year.
We work closely with buyers and vendors, but we also stay in touch with the latest studies. A recent study by a leading name in the property market has looked at property prices this year.
The most recent figures from Halifax suggest that the January property prices have suffered the most significant fall since the drop of April last year. That period saw the housing market grind to a halt in the initial lockdown.
New research from Rentround has examined areas in London where price reductions have occurred, and the level of price drop.
The most significant percentage reductions have occurred by Holland Park. There has been an average fall of 24% for property pricing here.
Some parts of London have been affected
As you might expect, Kensington and Chelsea has been badly affected, with the following areas also seeing a fall in property prices:
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Hyde Park Corner
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Kensington
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South Kensington
In the study, a total of 37 properties in Paddington saw their price reduced, Lisson Grove had 31 properties and Marylebone saw 30 properties see their initial asking price reduced.
Raj Dosanjh, Rentround founder, comments: “The property market is on edge at the moment. The stamp duty holiday duration, end of furlough, Brexit and working from home practices are creating a real risk to London property prices and rental amounts. It's unclear if the news from Halifax warrants panic at this stage, or if it's just a blip. Nevertheless, it's another thing to worry about for London property owners & landlords.”
Raj continued by saying; “The price reductions appear to be centred towards the West & North West of London, which will worry property owners & landlords in those areas. In parallel to this news, January saw the highest number of London landlords using our platform to compare letting agents fees & services.”
Raj concluded by saying; “Our data shows that guaranteed rent is a service in demand. Searches for this service increased by 22% over the last quarter, indicating landlords are looking to lock in some of their rental income. However, many letting agents on Rentround have pulled back their guaranteed rent services or increased their prices. Landlords looking to obtain the security this service provides in the midst of worker migrations out of London (which will impact rental income), may find it difficult.”
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
