Last LonRes report for the year - and what a year!
The last LonRes update for the year has just been published and it has to be said after the year we've just had in sales, we are definitely ready for the festive break. Batteries need to be recharged because it's been pretty crazy.
Even with a month to go before the year end, LonRes says there is no doubt that 2021 will be considered a good year for the prime sales market and we completely agree!
By contrast, the Rentals market has experienced a veritable rollercoaster ride throughout the year, with the prime lettings market swinging from one extreme to the other.
LonRes rightly summarises the market: "In late 2020 tenants were bargaining hard with landlords and double-digit discounts had become the norm across central London. A year on, and it is tenants who are having to work harder to secure a property."
SALES
The top end of the market continues to be busy. Sales over £2 million have been higher than the long-run 2015 to 2019 average every month since July 2020. Below £2 million the market has remained quieter, with fewer sales than the long-run average in four out of the last five months and there has been significant drop in the stock of flats with 27.6% fewer flats listed this November compared with last.
Overall prices rose 2.7% annually, with houses continuing to outperform flats
Houses accounted for over half of the total spend in prime London this November
Prices achieved for houses are now 9.6% higher than before the first lockdown in early 2020
Listings were down 23.0% on a busy November 2020 and 4.8% down on the five-year (2015-19) average November figure
27.6% fewer flats listed this November compared with last.
In contrast family houses appears to be encouraging listings, with new instructions up 0.7% on November 2020.
RENTALS
As the year closes, Landlords are in a position of strength as there remains such limited availability of properties to rent. There are no signs of market improvement just yet, so prospective tenants need to sharpen their tactics when looking for a place to rent, as we enter the new year.
November again saw a fall in the number of new listings and agents have reported further increases in renewals, as well as a rise in properties let off market and never reaching the open market. These are all signs of a market working with limited stock.
The number of properties listed to let fell 42% compared with November 2020 and by 58% compared with 2019
November recorded the seventh consecutive monthly fall in new instruction levels compared with 2020 levels
Rents are still rising, 19.7% higher than November last year and 2.7% higher than pre-pandemic levels
Stock levels are at an all-time low
Discounts are now at their lowest level since LonRes records began in 2005
We would like to take this opportunity to wish all our clients - past, present and future - a wonderful Christmas and a happy, healthy and prosperous New Year. May all your property dreams come true!
We will be officially closed between Christmas and January 4th, but please don't hesitate to call 020 3838 8366 or email info@roseandpartners.co.uk if you have an urgent enquiry.