The prime West London property market in Q3 has seen an extremely mixed set of market forces driving both sales and lettings, supply and demand.
The prime lettings market continues to be dominated by the scarcity of quality stock which has seen rents continue to climb to record level and stay there. Some of this can still be attributed to the post Covid 19 re organising of the market, many tenants are still outside the traditional lease term paterns that usually dictate when the market is busy, such as spring/summer and September. Usually as large numbers of applicants enter the market at these times the stock arrives to meet them, this is still not the case for large numbers of properties. This type of market dislocation will inevitably wash through the system as the normal cadence returns to London.
London continues to be a top seasonal destination for many tenants choosing to summer here in order to avoid hot domestic summers and also to enjoy the world class shopping areas that London has to offer. With movement and flight restrictions no longer a barrier to these individuals London has once again seen the market for its ultra prime property boom.
Interest rates and regulation continue to put upward pressure on rents. Higher interest rates will make some landlords look to other asset classes for their pensions or savings pots. The ever growing regulatory interference from the government continues to make the prospect of being a land lord less attractive and financially burdensome. As a result of this the lack of lettings stock does not appear to be easing any time soon.
The prime central London sales market has also seen many competing pressures driving the rhythm of the market throughout the year. Landstones have seen a flurry of activity in the family house market with many families having outgrown their current properties during Covid and are now looking to make a move over this summer. The top priority for many families is still access to good schools and this makes a lot of moves of this type time sensitive. Again, lack of stock is the key factor here and many price records have been broken in late 2023.
Going into the September and autumn markets Landstones is predicting unsatisfied demand and lack of quality stock to be the main driving factors. Inflation seems to have been stemmed by the governments policy of raising interest rates and banks are now looking to pass new lower rates onto borrowers. Global elements, such as the Ukraine war, extreme summer heat levels in many countries, and unstable domestic currencies continue to bring overseas buyers to the capital, while concerted ‘’Return to Work’’ policies along with greater financial opportunities are bringing domestic buyers and tenants back in large numbers.
If you have any questions or would like to discuss your property requirements please get in touch with our knowledgeable and professional team who would be happy to help.