London rental market is bouncing back after falls in the last two quarters and property sale prices in August 2021 have risen by 7.4% compared to a year ago. The biggest factor in determining the future of rent and sale prices in the next months remains the current limited supply of available properties on the market.
London’s rental market remains busy this autumn, driven by people coming back from holidays and workers returning to offices. We’re seeing an increase in foreign tenants since many travel restrictions have been lifted. According to the Q3 2021 DPS Rent Index, London average rents are bouncing back with +1.90% compared to Q2 2021 and +1.29% compared to twelve months ago. Prospective tenants are still prioritising more living space and outdoor space. Property supplies are low and this should support continued growth in the next months.
Property sale prices in London rose by 7.4% in August 2021 compared to 12 months ago according to the Land Registry, achieving an average price of £525,893, up from £498,083 in July 2021. The end of the stamp duty holiday in England – and a desire amongst homebuyers to close deals at speed – may have played some part in these figures. Mortgages are still the cheapest ever, allowing buyers to spend more on their dream property. This shows that multiple factors, including the need for more space, have played a significant role in house price developments during the pandemic.
YOY SALE PRICES BY BOROUGH
|Type||Barnet||Camden||Haringey||Westminter||Kensington & Chelsea|
Because of rising inflation and impending increases in taxes, demand might be expected to soften in the months ahead. Vendors and buyers should make the most of the next months, keeping in mind that interest rates may rise soon too. The biggest factor in determining the future of house prices remain the current limited supply of available properties on the market.
HEAT PUMPS FOR HOMEOWNERS AND LANDLORDS
Here is a useful article by the BBC explaining what they are, how they work and how much they cost to fit: https://www.bbc.co.uk/news/science-environment-57159056
You can find out if you qualify and apply to this grant here: https://www.gov.uk/domestic-renewable-heat-incentive