Despite the forecasts, 2020 is looking more successful for the UK residential market than the previous year. Compared to autumn 2019, prices across the UK increased on average by 5.5% — a record rise in recent years; in London, this figure reached 2.4%.
The number of sold properties was also significantly higher than in 2019. According to LonRes, the number of properties going under offer was up 21% from the same period last year.
However, in prime central London (PCL) which includes Mayfair, Kensington, Knightsbridge, Belgravia, St. James and Chelsea, over the same period the prices went down slightly: by between 2% and 7% depending on the area.
1. Property market growth in London and the rest of the UK is stimulated by the surge of activity among buyers who had to hold off their purchase along Brexit uncertainties and now are looking to use the tax holiday and lower mortgage rates.
2. Decrease in the number of visits from overseas buyers from spring this year may have triggered the decline in PCL property market; increased interest in the countryside where buyers can enjoy bigger gardens and terraces has possibly also affected the prices.
3. Premium real estate owners, who do not urgently need to sell their property right away may decide to rent it out and wait for a more favourable market cycle.
4. Finally, to those looking to buy in the £2 million+ price segment in Central London we recommend using the combination of lower stamp duty and asking prices and let us help you source the best options!