22/01/2021
๐ฎ๐ฌ๐ฎ๐ญ. ๐ช๐ต๐ฎ๐ ๐ฐ๐ผ๐๐น๐ฑ ๐ฏ๐ฒ ๐ถ๐ป ๐๐๐ผ๐ฟ๐ฒ ๐ณ๐ผ๐ฟ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ผ๐๐ป๐ฒ๐ฟ๐ ๐ฎ๐ป๐ฑ ๐๐ฒ๐ฒ๐ธ๐ฒ๐ฟ๐?
So far, the new year is a Groundhog Day replay of pandemic, office closures and absence of overseas residents and buyers so vital a part of the London property eco-systemโฆ yet prices finished up at least 1% higher than they were a year ago according to LonRes, and the number of sales has set a 14 year high according to yesterdayโs report in the Evening Standard.
Yes there is the stimulus of the Stamp Duty holiday and the encouraging prospect of mass vaccination. Beyond these trends, what is focusing minds is a fresh determination to seize the present. Quite simply, the only time we have to live and invest, acquire and divest, is now.
What do you do when sales prices are up, private rental sector regulations are in flux and rents are under pressure from additional compliance and competition?
Some landlords have sold stock with a view to moving on. Some landlords have sold stock with a view to reinvesting in the sort of property in high demand โ larger in size or able to be configured for home working/studying, with access to outside space and leeway for a pet. Some landlords have looked at their properties and decided to future-proof their rental appeal and compliance by upgrading windows, heating and electric systems, and storage (especially for bicycles), which also pays off should they decide to sell. Many landlords are staying in the game, finding that professional assistance to let and manage can increase yield and decrease stress.
Although a return to activity is welcome, prime NW London is an area where families invest for the long term; only 1% of properties in the area have changed hands over the past year. Our experience indicates that many of these sales are to existing property owners, although the first-time buyer is again seen on our leafy streets. When owner-occupiers snap up a former rental property, this feeds into a decrease in lettings listings, which recorded a 2% decline last year according to Realyse residential data platform. This promises to tighten availability in years to come.
In short, think through your and your familyโs requirements, and make a plan with some tolerance for flexibility. Consider adding a knowledgeable and committed property advisor to your team. And get ready for an eventful year when the property move you want to make becomes reality.
