While there has been a lot of talk about the London housing market recently, it is fair to say that the full story hasn’t quite been discussed in the media. Yes, the impact of the lockdown period, the rise of remote working and the stamp duty holiday has caused many people to consider leaving the capital.
However, there is also a lot of activity in and around London for buyers. There have been various studies suggesting Inner London is now more appealing to first-time buyers, and that established homeowners are moving to the suburbs.
At Stones Residential, we know the local market in and around Stanmore very well. From talking with buyers and vendors in the local area, we recognise there is a demand for homes, and that people are keen to move sooner rather than later.
Therefore, it shouldn’t be a surprise to learn there has been an increase of homes supplied to the London housing market.
One of the biggest issues in the London, and national, market in recent years has been the lack of homes placed up for sale. Now, thanks to a combination of factors, there has been a marked rise of homes being sold in and around London.
The growth in properties on the market in leading cities, including London, can be seen below:
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London with 53,639 on the market in 2019 and 60,6537 on the market in 2020
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Bristol with 3,064 on the market in 2019 and 3,502 on the market in 2020
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Brighton with 2,576 on the market in 2019 and 2,922 on the market in 2020
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Coventry with 1,684 on the market in 2019 and 1,908 on the market in 2020
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Birmingham with 4267 on the market in 2019 and 4693 on the market in 2020
There is considerable movement in the UK housing market
David Alexander, joint chief executive officer of apropos, said: “These figures both confirm and contradict the widespread expectations of market performance following the end of lockdown. With the relaxation of the stamp duty land tax threshold in England and Wales and a similar move in Scotland with land and buildings transaction tax there was expected to be something of a property boom as buyers sought to take advantage of the improved tax savings. There was also a strong view that the market, after being locked up for so long, had produced pent-up demand which would be released as soon as people were able to move. Indeed, some of these figures reflect this with Edinburgh and London in particular bouncing back very strongly.”
David Alexander continued: “The areas which experienced a decline in volumes are, not unexpectedly, also those which have experienced high levels of infection and the consequent imposition of longer lockdowns and greater restrictions. The North West, Yorkshire and the North East are the three areas with the largest decreases in properties being advertised for sale. This will have surprised nobody given that economic uncertainty always produces a faltering property market. If people are unsure about whether their jobs will remain, and this concern is exacerbated by continued lockdowns and restrictions on commercial activities it is clearly not the formula to produce higher house prices.”
The market is performing differently across the country
David Alexander also said; “These figures show that the UK property market is experiencing widely differing performances in each area. This is perhaps not surprising, but the scale of the difference is quite marked and reflects the different experiences each area has had both during and after lockdown. The announcement of a workable vaccine may now make the position more stable in the more vulnerable areas, but it is clear there is still some way to go. Quite what the impact on the busier areas will be when the stamp duty thresholds are returned to normal is unknown, but it is unlikely to bolster sales. However, it is equally unlikely that there will be a sudden slump. Maybe a minor dip in the late Spring reflecting a slowing in activity once the financial incentives have ended. Of greater importance will be whether unemployment is rising and if the economy is returning to normal.”
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.
