Article written and provided by Jo Eccles, Managing Director at Eccord, for Beacon Gainer, private wealth advisory services group.
Savills recently called the bottom of the market and data shows that the number of post-covid property sales in 2021 are higher versus any year since 2007.
Demand from domestic buyers for best in class central London houses remains, particularly in the £5m – £10m price bracket. And many buyers are willing to undertake significant refurbishments, despite labour and materials shortages.
International demand for apartments is building slowly and we are seeing the return of appetite for rental investments, with international buyers looking to diversify existing global property portfolios.
Research from one central London estate agency showed that historically, on average, 80% of a London landlords’ total profit over a nine-year ownership period came from capital growth, with just 20% from rental income. The buy to let investors we are currently representing are willing to accept relatively low yields in return for capital growth prospects, with leading research teams predicting a 12.4% increase in house prices over the next five years.
We’re also seeing ‘boomerang buyers’ return to London – those who moved to the country during the pandemic and are now renting or buying London bolt holes. With the return to offices becoming more common, the reality of long-distance commuting is now setting in. One recent survey showed that proximity to the tube or train station is now the number one priority, having overtaken access to green space or a park.
