Summer Prime Property Market Insights
While we have been extremely busy over the first half of this year, with some great sales achieved and a number of high quality instructions, as predicted, there are signs that the market is starting to re-align itself after the post-pandemic hike in both prices and number of sales.
Sales prices rose quite dramatically in the first post-pandemic year, but this was not expected to be sustainable in the long term.
Great prices on prime properties are still achievable, and last year’s increase in sales activity has led to a lack of stock, which is currently supporting higher sales prices. However, the growth in sales prices has been relatively flat in the first half of 2022 and the market is slowly coming back to pre-pandemic levels.
Slowing price growth
Prices growth is therefore expected to slow further in the second half of the year, which is always a little quieter than the first half, and it will be interesting to see how the market deals with some of the economic and political uncertainties at the moment.
Investment in property will still be a good option in the foreseeable future, as a hedge against inflation and unpredictable money markets, and we expect to continue in a positive fashion, but with vendors needing to align their hiked post-pandemic expectations to the reality of the current market.
Prime rentals still continue to rise in price, with the chronic lack in stock continuing. This will continue to be an issue in the near future until more rental properties come back onto the market.
The latest LonRes prime property report is out and reveals the following key points:
Annual price growth is expected to slow during the second half of 2022
Homes priced above £5 million are still recording activity levels in line with 2014, and sales this year to June 2022 were 11% higher than the same period last year
The current economic and political uncertainty means it is likely that price growth will slow further
Outside space in any form is key and at the top of buyers’ wish lists
Activity levels are lower than last year’s stamp duty fuelled boom, but still above pre-pandemic levels
Rents are 28% higher in June than last year and 14% higher than the 2017-19 average and the Autumn may see even further increase in rents due to shortage of properties
To read all about the market in detail, Click Below to view the latest LonRes report.
Please feel free to contact us with any questions you might have on the current prime sales or rentals market.