The housing market remains busy. Compared to the last ‘normal’ market of 2019, buyer enquiries are up 31% and mortgage approvals and sales are up by 12% and 11% respectively. However, there are half as many properties available to buy and stock levels are down 55% (Rightmove, HMRC, Bank of England). The prolonged mismatch between demand and supply continues to support prices. On average, properties are selling subject to contract in just 31 days, the quickest time ever recorded. With competition for properties remaining high, Rightmove report that asking prices have hit their fourth consecutive record high in as many months.
Over 433,000 homes in the UK changed hands in the first four months of 2022, making this the third busiest start to a year since 2007. Last year was an exceptional year due to Covid-19 and 2016 saw a surge prior to the introduction of the 3% additional homes surcharge. Except for last year, April 2022 has been the busiest since 2007 (Dataloft, HMRC). The London market has spurred back into action in the past year; close to one in every 25 properties is estimated to have changed hands. Tower Hamlets, Havering and Wandsworth are currently the most active housing markets in the capital.
A perfect storm
Economic headwinds are gaining momentum. Expectations of global and UK economic growth have been pared back, while consumer confidence has plummeted to its lowest level since records began in 1974. Optimism is weaker than during the global financial crisis, Brexit or Covid-19 (GfK). The Covid recovery, war in Ukraine and rising energy and food prices, alongside a strong labour market and low unemployment, have created a perfect storm. Inflation is pushing a 40-year high. Thanks to fixed-rate mortgages, many households are cushioned from the impact of the latest base rate rise, but day-to-day budgets are increasingly feeling the squeeze.
Annual price growth in London is currently stronger than it was a year ago, although at 4.8% it remains the lowest of any region of the UK (ONS, UK HPI). Compared to the other regions of the UK, the capital has a greater volume of stock left to sell, but levels remain lower than the historical norm.
Slow gear change
For many, the question is when, not if, the property market will start to moderate. However, any gear change is liable to be slow and steady, and not an emergency brake as was the case in the global financial crisis of 2008. Forecasters still anticipate positive price growth over the course of the year. Market fundamentals remain strong. A strong desire to move remains in the minds of many and there is a shortage of properties, compounded by data indicating that new home completions remain below pre-Covid levels and short of the government’s 300,000 homes target.
Properties for sale in London
Oslo Tower, London, 2 bedrooms
This vast and bright 18th floor home has several standout features including the river-facing 37ft living area with open-plan kitchen and the dual-aspect city-facing master bedroom, in conjunction with a space ideal for a home office and a stunning ensuite with separate bath and walk-in shower. The second spacious bedroom offering views towards Greenwich is located at the opposite side of the property and there are two bathrooms as well as a further separate WC.
This property has been kept to a high standard whilst offer great space and light throughout. On entering this home you are greeted by a generous hallway with a door leading to a bright and spacious through lounge, with a Victorian fire place. On to the modern kitchen/diner with well designed utility room/downstairs WC coming off the kitchen area, and doors leading out on to the lovely garden.
Camberwell, London, 2 bedrooms
Enjoying a peaceful yet supremely convenient setting, this well presented one bedder benefits from a bright living space, study and modern bathroom. Facing over a particularly lovely shared garden the property also has the use of communal storage. De Crespigny Park leaves you perfectly placed for the amenities of Camberwell, East Dulwich and Herne Hill. Denmark Hill's zone 2 station (with the London Overground Line) is but a five minutes stroll.
As property prices and demand continue to rise, sell your property with experts in the property industry this spring. Contact your local Guild Member today.