Thursday, July 7, 2022
Real EstateUK

London property market recovers from pandemic

London property market

The number of new prospective buyers registering in London last month was the third-highest figure in a decade

Demand in the capital has recovered from the depths of the pandemic as the ‘escape to the country’ trend calms down and the UK economy fires up.

The number of new prospective buyers registering in London last month was the third-highest figure in a decade. Meanwhile, supply is finally picking up as the economic warnings mount, mortgage rates climb and owners sense prices may be peaking.

Underlining this, the number of new sales instructions in May was the sixth-highest figure in ten years.

With demand and supply both high, the inevitable result is more transactions. Indeed, the number of offers accepted in May was the highest monthly figure in a decade.

The pattern is broadly similar in prime central and outer London, with both areas recording a ten-year high for offers accepted.

Although there will be a lag before sales numbers also rise, May was the tenth highest month in a decade for exchanges when the impact of stamp duty holidays is removed.

Tom Bill, head of UK residential research at Knight Frank, says: The stars are aligning for buyers and sellers in the London property market, with supply increasingly able to keep pace with robust demand. For those wondering when this period of strong activity will end, it’s likely to last longer inside zone 1 due to the recession-proof qualities of prime central London and the fact a longer-term recovery is underway.

It’s a perfect storm, said Andrew Groocock, head of sales for Knight Frank’s City, East and North region in London. Our London sales pipeline is the biggest it has ever been and even exceeds the most frenetic periods of the stamp duty holiday.

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