Over the past two years, the Covid-19 pandemic has had its effects on the world’s economy, driving individuals to embrace change and adopt a new way of living. In addition, the emergence of the new Omicron variant has had adverse effects on the property market. However, Prime Minister Boris Johnson’s, recent announcement that lockdown restrictions would be lifted proves that this was only a minor hurdle that needed to be overcome. The London property market is thriving with estate agents able to conduct in-person house viewings and buyers able to move back home to Central London.
There is a better understanding of the impact the pandemic has had on the real estate market in London and its relative housing prices. With an increased number of properties being listed, it is predicted that smaller price increases will be witnessed in 2022. This is already evident in the number of accepted offers in Central London in November 2021 with a 116 percent increase compared to the same time last year. These expected increases reflect the market conditions witnessed over the past nine months with average prices increasing by 1.3% in prime Central London.
The share of first-time buyers in the Central London property market has continued to rise steadily from 32 percent in 2009 to 35 percent in 2020 despite the temporary closure of the real estate sector. This demand is largely as a result of first-time buyers expected to utilize the Government’s shared equity ‘Help to Buy’ scheme before it closes in April 2023.
With the impact of the Omicron variant being less severe on the Central London property market than previously expected, the supply of properties available for purchase is predicted to fast-track and balance out demand. This is largely as a result of an increased number of foreign buyers returning to the UK.
International buyers, that normally drive the luxury Central London market, started to return at the end of 2021 following the easing of international travel restrictions. Advantageous exchange rates are attracting high net worth buyers from the US, Europe, and the Middle East.
Purchasing a home is an emotional and time-consuming process and thus experts at Vogue Properties take the time to build a profile of certain unique criteria for each prospective client to ensure that they are purchasing their perfect home. Thus, it is important to have a professional team of consultants who are competent, trustworthy upfront, and able to provide you with the best advice throughout the property purchasing process.
If you are looking to purchase a second home in London and want someone to assist you through the process, get in touch with us. We will help guide you step-by-step through the purchasing process to ensure you find your perfect home.