Wednesday, May 12, 2021
Real EstateUK

Significant recovery for property in London

property in London

This recovery followed a dramatic fall in sales transactions during lockdown, compared to the first quarter, as international clients left London

There has been a notable recovery in activity in prime areas of the capital following the first lockdown, according to Winkworth.

Figures contained within the company’s prime central London report show that sales and valuations in the third quarter of the year more than doubled on the second quarter, while instructions rose by 68% year-on-year.

Buying a property in London has traditionally been a popular option for investors.

Meanwhile, exchanges were up by 192% in Q3, against the second quarter this year.

This recovery followed a dramatic fall in sales transactions of 55% in Q2 during lockdown, compared to the first quarter, as all but essential travel was banned and international clients left London.

The stronger performance in Q3 has been driven by a combination of existing pent-up demand, and an increase in demand for larger houses with home studies and more outdoor space since the first lockdown, plus the impact of the stamp duty holiday.

Charles Erwin, of Winkworth in Notting Hill, said: We have been busier in the £2m-£4m range, with not enough family houses or large flats with outside space to meet demand.

The report reveals that the average time between offer and completion was 113 days in Q3 this year, compared to 85 days during the same period last year – caused by the volume of sales, and conveyancing, local council searches and mortgage offers taking longer to process.

Josh Grinling, of Winkworth in Kensington, commented: Solicitors are taking on too many sales/purchases, which is forcing them to leave new instructions gathering dust. We are seeing lots of examples of solicitors not looking at transactions until all the searches are in.

Looking ahead, Winkworth predicts that transaction activity is set to be strong in Q4 as summer sales reach completion.

Dominic Agace, chief executive, Winkworth, said: Despite a rapid increase in the number of house hunters across London, prices remain flat as they have done for several years now as we await a clearing of Brexit and now Covid clouds, before moving forward again.

He added: We expect to see a pause again under the second lockdown, but the easing of international travel restrictions, hopefully as early as Q2 2021, should open up significant investment inflows into prime central London.

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