May 2021 LonRes Report Shows April Exceeded Expectations in PCL
The May 2021 Lonres report is just out and in order to properly compare figures for this pivotal month in the property market, this report compares April 2021 with April 2019, recognising that April 2020 was too unusual to give a true indication of the current health of the prime market.
The report also takes into account the five-year average (2015-2019) for April.
Image from Lonres May 2021 report
Highlights
All in all it’s very positive for the prime sales market with April exceeding expectations in most areas, with £5m+ sales the best they’ve been for years.
Lettings is still a tough market, but the window of opportunity in a tenant’s market appears to be coming to an end with the market settling down, rents levelling and more tenants coming back into play.
SALES
The stamp duty holiday extension and the re-opening of the UK economy resulted in levels of activity that far exceeded expectations.
The number of homes put under offer this year was at the highest level for any April over the last eight years. The same was true of transactions which outperformed the long-run average by 5%
New listings rose 35% compared to April 2019, with April this year seeing 10% more new instructions than the five-year (2015-2019) April average.
Stock levels remain higher than at the same point a year ago, with 36% more properties listed at the end of April this year compared with last.
Sales this April show a 21% increase and a rise of 5% over the five-year (2015 to 2019) average.
Sales in the £5 million-plus market were up 65% in April 2021 compared with April 2019.
LETTINGS
The window of opportunity for tenants appears to be closing.
Rents look to have bottomed out and demand, particularly for smaller properties, is rising.
2% increase in new lets across prime London between January and April this year compared with 2019 levels.
People are looking for more cost effective city rentals with new lets agreed for studio flats up 15%, and one bedroom properties up 9% over 2019; in comparison to 23%
FEWER lets of properties with 4+ bedrooms during the first four months of 2021 compared with 2019.
New instructions for lets in April down 17% on 2019 levels.
The window of opportunity for tenants is coming to an end with a levelling off in rents and the prospect of more prospective tenants coming forward over the next few months.