July LonRes report shows positivity continuing in PCL
The July 2021 LonRes report has just landed and we're glad to say that once again, the figures show a lot of very positive activity pointing towards an ongoing recovery in both sales and lettings as we come out of lockdown.
It will come as no surprise that there was a flurry of activity towards the end of June as both the end of Q2 and the end of the Stamp Duty savings extension coincided.
There is positive news for the lettings market, too. LonRes reports that stock appears to have returned to pre-pandemic levels and rents are rising, as supply and levels of demand come more closely aligned.
LonRes July 2021 highlights:
Sales
LonRes reports that transaction volumes exceeded levels seen at previous peaks in 2007 and 2014, with June 2021 being the busiest month on record for properties registered as sold on LonRes, although this rise in activity is however unlikely to be down to stamp duty incentives alone
The market below £1 million was the busiest overall, but there were 45% more sales of properties priced at £5 million or more
In our business, properties between £2m and £10m dominated the quarter
PCL saw modest price falls of 1.6% and Prime London 2.6%, which given the lack of overseas buyer presence in the market is negligible
Stock was up 20% and completions set new records - 140% up on the 2015-2019 5-year average
We now anticipate the usual quieter summer period ahead.
Rentals
Smaller properties are the property of choice right now: pied-à-terres, compact spaces with designated work spaces (desk in bedroom and reception being requested for couple sharers) and of course outside space, close to parks and greenery and easy commute locations for those returning to the office. Cost consciousness is at the forefront of tenant searches.
Fewer rental properties currently in the market which will no doubt in time help support rent recovery
Rent levels still down by 12.5% versus pre-Covid levels, but improved 19% in last quarter as market gently makes inroads to recover the deficits
With more workers looking to return to the office from 19 July onwards, LonRes predicts that prime lettings agents will face a busy summer ahead
Until we are fully out of restrictions however, we can’t speculate too much about anticipated activities, but we'll wait to see supply and demand dance to their usual tune...
If you're heading off on a staycation or further afield, we wish you a well earned break and some long-awaited relaxation time with your family and friends.
In the meantime, don't hesitate to all us on 020 3838 8366 or email info@roseandpartners.co.uk
Best regards,
Simon, Tom and Zoë