October LonRes Report reveals sales are better than expected, while rentals market goes crazy!
The October LonRes report is out and unlike some of our former school grades, we're seeing "better than expected" across the sales market, with a lot of activity both in terms of new instructions and deals being done and stronger Q3 exchanges than in recent years. As for lettings, well, how long can this mad market continue? It's like a bun-fight out there, with low stock driving up rents and would-be tenants having to make super-quick decisions.
SALES
It's safe to say that the prime sales market has been better than expected in Q3, despite a predicted slow-down. We have been extremely busy over the last month, much more so than would "usually" (ie pre-pandemic) be the case. There has certainly been no let-up in activity.
The upper end of the prime sales market had a particularly busy quarter, with £2 million+ homes up 5% on Q3 2020 and 21% higher than the 2015 to 2019 average.
The number of new properties reaching the market was 3% higher than the Q3 five-year average. Prices are rising too, with both houses and flats recording annual increases in September.
However, we mustn't get carried away with these better than usual figures. The market will calm down over the next few months and having correctly priced stock will be the key for a good Q4 and Q1, 2022.
LETTINGS
As we've previously mentioned in our blog, the Lettings market has gone slightly insane! With some reports of up to 80% reduction in available stock.
The market has experienced a dramatic swing over the last few months, going from tenant driven to landlord driven seemingly overnight. Low stock is driving high demand and increased rents and this has led to tenants deciding to renew their lease rather than move, which has further driven down stock and driven up rents.
New tenants have to be ready to make quick decisions in order to not miss out and expectations are having to be managed. We advise tenants to streamline their wish list and be 100% dedicated to their search, or to delay it.
A retained agent is definitely a good idea at the moment in order to secure a good property at the right price.
LonRes Highlights
Sales
The number of properties sold between January and September was 32% up on the 2015 to 2019 average.
The number of properties sold in the first nine months of 2021 is just 3% shy of full year 2019 volumes.
There were 21% more sales at £2million+ in Q3 2021 compared with the 2015 to 2019 Q3 average.
Q3 saw a drop in sales at below £2 million, but above £2 million sales increased, with 15% more sales between £2 million and £5 million, and 39% more at £5 million+ compared with the 2015 to 2019 average.
Lettings
Lonres reports a fall in prime London stock of 68% compared with the same point a year ago. This has seen rents rise to pre-pandemic levels as tenants compete for somewhere to live.
Rents are 11.7% higher than a year ago.
Achieved rents are now back to their pre-lockdown peak, with values across prime London 0.4% higher in September 2021 than February 2020.
68% fewer available properties in September 2021 compared to 2020 and 38% less than in 2019.
Pimlico, Westminster and Victoria report annual stock levels down 65% on September 2019 and by 71% on 2020.15% fewer new listings compared with 2020 and 27% fewer than the five-year (2015-2019) January to September average.
Enjoy the beautiful Autumn colours of London. It's a great time of year in the capital.
For all sales and rentals enquiries, please don't hesitate to call us on 020 3838 8366 or email info@roseandpartners.co.uk