London House Price Changes

There is every chance 2021 will be a challenging year in the housing market.

There is every chance 2021 will be a challenging year in the housing market.

Even though we have endured another lockdown at the start of this year, the housing market has remained open. There have been property moves, and buyers have been active.

Also, when it comes to the supply of homes, the proportion of properties being listed for sale in the capital is greater than most places across the country.

There are fresh challenges to overcome

However, there are challenges to overcome. Information provided by the Halifax indicates property prices in January experienced their most significant drop since April of 2020. That was the month the housing market practically ground to a halt thanks to the first wave of the pandemic.

Research from Rentround has examined areas in London where price reductions have occurred, and the level of price drop.

The most significant percentage reductions have occurred by Holland Park. There has been an average fall of 24% for property pricing here.

As you might expect, Kensington and Chelsea have been badly affected, with the following areas also seeing a fall in property prices:

• Hyde Park Corner

• Kensington

• South Kensington

In the study, a total of 37 properties in Paddington saw their price reduced, Lisson Grove had 31 properties and Marylebone saw 30 properties see their initial asking price reduced.

Raj Dosanjh, Rentround founder, comments: “The property market is on edge at the moment. The stamp duty holiday duration, end of furlough, Brexit and working from home practices are creating a real risk to London property prices and rental amounts. It's unclear if the news from Halifax warrants panic at this stage, or if it's just a blip. Nevertheless, it's another thing to worry about for London property owners & landlords.”

Raj continued by saying; “The price reductions appear to be centred towards the West & North West of London, which will worry property owners & landlords in those areas. In parallel to this news, January saw the highest number of London landlords using our platform to compare letting agents fees & services.”

Raj concluded by saying; “Our data shows that guaranteed rent is a service in demand. Searches for this service increased by 22% over the last quarter, indicating landlords are looking to lock in some of their rental income. However, many letting agents on Rentround have pulled back their guaranteed rent services or increased their prices. Landlords looking to obtain the security this service provides in the midst of worker migrations out of London (which will impact rental income), may find it difficult.”

North London market is holding up

Of course, it is wrong to suggest the property prices in Inner London, or the high-end property market, represent the full story of what is happening in London. If you are looking for guidance in the North London housing market, we can help you.

According to Rightmove, as of the end of February 2021, the property market in Archway could be described as follows:

“Properties in Archway had an overall average price of £638,688 over the last year.

The majority of sales in Archway during the last year were flats, selling for an average price of £469,721. Terraced properties sold for an average of £883,066, with semi-detached properties fetching £1,432,500.

Overall, sold prices in Archway over the last year were 3% up on the previous year and 1% up on the 2017 peak of £630,081.”

We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way.