Mixed news for London Property

Mixed news for London Property

London property continues to endure the tougher side of the UK property market, as different studies show lettings and purchase affordability both down in the run up to Christmas.

However, the news is not all bad as the number of prime Central London tenancies agreed in the three months to November has risen 23.2% year-on-year as rents hit a seven year low.

The good tenant and the bad tenant [Infographic]

The number of viewings was also up strongly by 18.4% and the total of new prospective tenants rose 7.8% over the same period, says leading international agent, Knight Frank.

The rise in demand came despite a moderate slowdown ahead of the Christmas holiday period, aggravated by uncertainty surrounding the United States election result.

Higher stock levels have put downwards pressure on rental values, which has boosted affordability for tenants, whose negotiation position has strengthened over the course of this year, says Tom Bill, Head of London Residential Research in the November 2016 Prime Central London Rental Index.

“Higher supply is the result of increased regulatory uncertainty in the sales market, which has meant a growing number of vendors have opted to let their property rather than sell until more clarity emerges surrounding future pricing trends.

“The pattern of higher deal volumes is more marked below £1,500 and above £5,000 per week, while activity remains weaker in between, a section of the market traditionally driven by senior executives in financial services.”

Meanwhile, a recent Hometrack UK Cities House Price Index highlights the extent to which the capital’s property values have climbed in recent years, with the price to earnings ratio in London now at a record high of 14.1. London has the highest price to earnings ratio, due to lack of supply and strong demand fuelled by low mortgage rates, which have driven house prices up 86 per cent since 2009.

At the other end of the capital’s housing ladder, the Mayor of London, Sadiq Khan, has published a draft good practice guide, which recommends that Londoners must be involved at an early stage to help shape any proposals by boroughs and housing associations for estate regeneration.

LSE investigating London’s housing market

The draft guidelines, which have been developed with councils, housing associations, and residents’ groups in recent months, recommends full rights for tenants to be rehoused on newly-regenerated estates as well as a fair deal for leaseholders.

The Mayor has also set out his expectation that demolition and rebuilding should only go ahead after other ways of achieving the aim of regeneration have been considered, and where there is no loss of social housing.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT