With the drastic changes enacted on the industry over the past two years thanks to the pandemic and political events such as Brexit, we look at the current trends, property demands and what that means for the London property market, and London landlords and tenants, as we move into the year 2022!
During the pandemic, there was a race for space – a desire for gardens, a home office and even home gyms! This altered consumer behaviour and caused many to move out of cities like London, in favour of more rural areas. According to Estate Agent Today:
“During the pandemic, the demand for suburban properties with green space skyrocketed, thanks to lockdown, working from home, and the desire for extra room: Rightmove statistics over the last year have shown a significant uplift in searches for gardens and extra bedrooms for offices. However, as businesses are opening up workplaces again, there are signs that people want to move back towards cities and industrial centres. It’s too early to tell right now whether this is going to become a more sustained trend, or if the popularity of suburban properties is going to endure.”
This swing back to city life has been noted by some, including London estate agents, with demand for properties beginning to rise as many are returning to office life and a more bustling city. However, as Estate Agent Today further explains, “the latest news on winter Covid plans might mean that working from home is once more encouraged over winter, which might support those who are staying outside of cities”. This could be especially true now people are generally placing a higher value on their homes, having spent more time in them than ever before – as Aneisha Beveridge, head of research at Hamptons explained here.
Looking for London property? At Rickman Properties, we have a range of rental and sales properties available in the Royal Borough of Kensington & Chelsea. Visit our properties page to see what we have on offer!
The end of the stamp duty holiday
According to Estate Agent Today:
“The stamp duty changes have impacted the market hugely throughout the pandemic, with a record number of transactions taking place for many agents. However, as the changes are being brought to an end, the market is shifting once again, with uncertainty surrounding whether the end of the stamp duty holiday will drive down prices.”
Should I buy now?
Now both furlough and the stamp duty holiday have come to an end, some buyers will be hoping for a dip in prices, although this is not guaranteed. If you would like to learn more about the current London property market and what’s on offer, feel free to contact us at Rickman Properties.
What could this mean for you?
If you are a landlord with a property to rent in London, the prospective surge in tenant demand is, therefore, good news. It could not only mean you are more likely to find a suitable tenant but also be able to achieve the rent price you want.
With demand for city properties predicted to rise in 2022, you can expect to face more competition with other tenants to secure your home. It could also mean you are paying a higher rent than say a year ago.
To conclude, what’s the outlook?
Gráinne Gilmore, head of research at Zoopla has explained:
“As ever, much will be dependent on the extent to which the current rules around Covid-19 continue as they are. But given no deviation from the current landscape, the demand for rental property, coupled with lower levels of supply, will continue to put upward pressure on rents. In London, this will translate into rental growth returning to positive territory late 2021 or early 2022.”