With a challenging year for the sector behind us, the London property market shows strong signs of recovering throughout the first quarter of 2021. From the increase in transactions to the rise of tenants looking to move, here are the key figures you need to know…
From the immediate Covid-induced housing market freeze in March to the new norm of ‘virtual viewings’ and closed real estate offices, London’s property market has been riding an uncertain path since 2020. But analysis of the first quarter of 2021 shows that the London property market is recovering strongly, remaining a go-to destination for property investment.
Increase in London Transactions
This February, analysis shows a 46% increase in residential transactions compared to February 2020 before the pandemic hit, whilst the number of transactions in prime central London being the highest they have been since 2016! Such ongoing demand for London property in challenging economic times really shows the resilience of our sector.
This comes amidst the extension of the Stamp Duty Holiday that has continued to support thousands of homebuyers throughout the first quarter.
London Homebuyer Demand on the Up
Homebuyer demand in prime central London was up 1% in the first quarter, with the largest quarterly increases right on our doorstep, including the West London neighbourhoods of Notting Hill, Fulham, Holland Park and Kensington. With new 95% government-backed mortgages launching this month, we can expect a new wave of prospective homebuyers pushing demand even further this year.
Demand for super-prime London homes (£10 million +) was up 2%. Holland Park and Notting Hill proved the best performing areas, with Chelsea and Kensington also in extremely high demand.
Find your West London dream home with Rickman Properties London.
London House Prices Steadily Climbing
Whilst house price growth in London saw one of the smallest growths in the UK at 4.8%+, London house prices have still increased overall since the first quarter of 2020, at an increase of 6.2%. This is pretty impressive considering lockdowns took 10% off UK GDP during this period. Indeed, the total value of property in London increased by £1.8 trillion during the whole pandemic – not a bad investment!
The future beyond the first quarter is looking even brighter, with London house prices set to surge over the next few years. Projections currently stand at a 12.6% rise by 2025.