London property market defies expectations, rebounds amid supply squeeze
The London property market is currently on course for its busiest year since 2007, which comes on the back of data showing that the sector as a whole has defied expectations to generate double-digit price growth over the past year.
This has been fuelled by a number of factors, but chiefly a supply squeeze across most regions, with London being the least squeezed region. This is a creation of the pandemic as buyers and sellers reassessed where and how they lived during the lockdowns.
This has inadvertently raised demand for properties with outdoor spaces and proximity to greenery. The stamp duty holiday also came to an end on June 30, leading to a rush to complete purchases by the deadline.
“For those selling, they have to be realistic with prices. Whilst we’ve seen record sales volumes, it does not cut across the board. The numbers seen may not be a true reflection of the overall market as new builds come tops due to government help to buy.
“In some cases, price points that were achieved were a fallout from the stamp duty holiday,” according to Chief Executive Officer, Daniel Ford International, London, Yemi Edun.
“For those people buying, keep your eye out for the EWS1 because of cladding,” according to Barry Kyte of Hadley Kyte Solicitors. The winds of a historical low interest rate will be in your favour with a current rate of 0.1per cent.
Edun said: “A great positive for Nigerian buyers is the fact that there are a record number of banks available to provide mortgage options with an equity contribution of 30 per cent. These banks are both local and international banks.
“The next generation of upwardly mobile buyers has sought to learn lessons from the mistakes of the older generation. Low property stock is still a hindrance, but those in search of ways to affirm their global international standing, a second passport is also now an important acquisition.
“Primary focus hotspots for such buyers are the U.K, Cyprus, Greece, Malta, and some islands like St Kitts and the Dominican Republic.
“For the most mature of our investors, one thing we’ve identified is people downsizing due to children completing their education. They are now focused on matters of legacy and estate planning, “ Edun added.