Competition Rising In London Housing Market

17th August 2020 posted in Sellers Buyers Landlords Tenants

Staying up to date with all the factors which influence demand and prices in the London housing market can be a full-time job in itself. We know you don’t have the time to devote effort and energy to staying in touch with the market so closely, but this is why we are here to help you.

At Hunters Greenwich, we are pleased to say we have helped many buyers and vendors across Greenwich and surrounding areas. If you are looking to make an informed decision when you next make a move, we look forward to assisting you as best we can.

You will likely know about the stamp duty holiday, which is in effect until (at least) the 31st of March 2021. There are some suggestions that the holiday will be extended or made permanent, but for now, buyers and vendors should proceed with the March deadline in mind.

Big savings can be enjoyed by buyers in 2020

Given the savings on offer, up to £15,000, it is easy to see why buyers are interested in purchasing a home sooner rather than later. This also provides the impetus for vendors to enter the market. We know that there is a spike in activity from buyers and vendors locally, but there is another factor to consider in the market.

Most buyers and vendors in and around Greenwich won’t have given much thought to the introduction of a 2% surcharge for overseas property buyers. This is set to come into force in April 2021, which will increase the cost of buying property in London for foreign investors and buyers.

Therefore, with that price hike looming, and the current stamp duty holiday in place, there is a significant incentive for overseas buyers to act sooner rather than later. This creates a higher level of competition in the London property market. Higher demand from buyers is great news for vendors, but it might not be welcomed so warmly by local buyers.

Overseas investors are looking in more areas of London

It used to be that foreign investors were primarily looking for prime London property, centred in the heart of the capital and in the West End. However, the demand from overseas buyers has evolved, and many parts of London are welcoming buyers looking for even more value for money in their purchase.

Greenwich has considerable history, and a fantastic range of properties, which makes it a natural choice for people buying property from outside of the UK. If you are a Greenwich vendor looking to sell your home, get in touch with Hunters Greenwich and we will arrange a property valuation for you.

Marc von Grundherr, a noted figure in the London housing market said; “The recently implemented stamp duty holiday has not only rejuvenated domestic buyer demand, but we’re also seeing foreign buyers starting to return to the capital in their numbers. In fact, the vast majority of our buyer interest coming from Asia has only been concerned with homes falling under the £500,000 threshold.”

Marc continued by saying; “London remains the pinnacle of homeownership for many foreign buyers, and while a ramped-up level of stamp duty will be hard to swallow, it certainly won’t deter buyers in London’s high-end market. However, with many rushing to make the most of the savings currently on offer, any negative price trends that have plagued the capital in the last 12 months are sure to be short-lived as demand starts to outweigh supply.”

If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Greenwich today for all your housing and letting needs.