What Comes Next In London Housing Market?
28th December 2020 posted in Sellers Buyers
Not too many people will want to spend too much time looking back on 2020, but if you want to make the most of 2021, there is a lot to be said for looking forward.
At Hunters Forest Hill, we are pleased to say we have worked with many people moving home of late. We aim to provide you with the best standard of service, and if you have any questions regarding the housing market in 2021, we are here to assist you.
A new forecast, which was initially published on the Homes & Property site, indicates London will witness an increase in property prices by 21% over the next five years.
The study has been carried out by JLL, and it suggests London will perform stronger than the rest of the UK property market next year. While there is tipped to be a national fall of 1.5%, the London market is expected to remain flat.
JLL’s head of research, Nick Whitten, expects property prices in areas which were previously less fancied will also increase.
Nick said; “We are seeing buyers prepared to sacrifice commuting convenience in search of more space, which will drive activity in some previously less fancied locations.” Whitten also believes many homeowners will adjust where they live in London, but he doesn’t believe there will be a notable exodus from the capital.”
A shortage of homes will ensure prices continue to rise
Nick Whitten also spoke about the need for further homes being supplied in the market. One of the most pressing factors in the property market is demand outstripping supply. It is no surprise to learn housebuilders, like so many industries, have struggled this year. There has been a shortfall of homes being supplied to the market, and this means house prices are set to rise.
Whitten said; “We expected to see 20,000 new homes built this year against a target of 52,000. In reality this number has dropped to 10,000 for 2020 due to the industry shut-down and the ongoing need to socially distance on site.”
The heart of London will see activity
It is likely the prime London property market will continue to lead the way, but then there is a trickle-down effect across the rest of the market.
Becky Fatemi is a property agent who specialises in prime property, and she said; “Prices have slid this year in prime central London by 20 to 30 per cent making these multi-million-pound trophy homes seem comparatively good value versus the equivalent districts in cities such as Paris, New York and Hong Kong. The residents of such homes spend money on retail, leisure, culture, transport and food, benefiting the wider economy.”
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.