The stamp duty holiday has created a lot of activity in the housing market, but it is natural that some people are looking towards the longer-term impact for property in the capital.
Therefore, it will be a relief to hear a recent study indicates the London property market will continue to move forward positively.
The forecast, which was initially published on the Homes & Property site, indicates London will see a rise in house prices of 21% over the next five years. The study has been carried out by JLL, and it also suggests the London housing market will outstrip the rest of the UK property market in 2021.
The prediction is for the London housing market to remain constant while prices across the country will fall by 1.5%.
The study also suggests that many people will take the opportunity to move to the suburbs. At Stones Residential, we operate in and around the Stanmore area, and we know this is a move many people are interested in.
We have spoken with many buyers and vendors recently, and areas like Stanmore appeal to buyers. There is a great deal to be said for living in aera with more space but still being within easy reach of the heart of London.
There will still be high demand for the heart of London, but it looks as though first-time buyers will have the opportunity to step onto the market here.
JLL’s head of research, Nick Whitten, expects property prices in areas which were previously less fancied will also increase. This is partly down to home buyers prioritising home office space over the importance of location.
Nick said; “We are seeing buyers prepared to sacrifice commuting convenience in search of more space, which will drive activity in some previously less fancied locations.” Whitten also believes many homeowners will adjust where they live in London, but he doesn’t believe there will be a notable exodus from the capital.”
A shortage of homes will ensure prices continue to rise
Whitten also said; “We expected to see 20,000 new homes built this year against a target of 52,000. In reality this number has dropped to 10,000 for 2020 due to the industry shut-down and the ongoing need to socially distance on site.”
Will the stamp duty holiday be extended?
Becky Fatemi spoke about the dangers associated with stopping the stamp duty holiday abruptly. She said; “The combination of the stamp duty holiday with Help to Buy is like giving a child too much sugar. If the Chancellor ends the stamp duty holiday abruptly, activity could crash.”
Property agent Alex Goldstein questions whether the Chancellor should have held off for longer, saying; “The pent-up demand and need for space in the lockdown was always going drive a mini boom in the housing market. He should have saved the stamp duty for when sales start to taper off, which is beginning to happen now.”
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.
