The London property market has proved resilient in the face of economic uncertainty and short-term political upheaval. Buyers are jumping in where they see good value, good locations or both, and we expect this trend to continue into 2017.
Dexters has identified a high demand for property from local and overseas buyers, both owner occupiers and investors, all saying they feel confident about the market. Buyers and investors both tend to take a long-term view when buying property, particularly in London, so they aren’t deterred by short-term influences.
Investors recognise that London is unique as a safe bet in terms of property as an investment – regulation remains a light touch and the city continues to attract new investment from around the world. The company expects property transaction numbers to increase sharply in the opening months of 2017 – homeowners who have been putting off moving are on the march, while new buyers and investors are looking to secure property in a safe yet lucrative market.
Andy shepherd, managing director at dexters, reports: “the first half of 2016 saw our offices break all records, despite stamp duty changes and the eu referendum. we remained busy throughout the year and expect to produce very good results into 2017”.
Shepherd predicts the early months of the new year to be busy ones for the company, with plenty of buyers and buy-to-let investors poised to take decisions.
Despite Government changes on loan interest and the introduction of higher stamp duty in April 2016, the overwhelming majority of landlord investors remain undeterred. The medium- to-long-term view they are taking means that the investment market remains strong. We expect to see a slight price adjustment as purchasers factor in the higher stamp duty, but that’s nothing new as we often see prices ebb and flow during the year. We expect property prices to continue rising steadily into the new year, and that they will double by 2030.
Increasing numbers of people are choosing to rent so that they don’t have the responsibilities of owning a property and can live where they chose, hassle-free and flexibly. Investors are out in force as there are reliable returns from a vibrant lettings market. London attracts investors as well as homeowners who want to enjoy life in the buzzing city, so demand is strong from local, American and European buyers.
The capital is an increasingly popular city to live and work in, and many new and improving districts are emerging around the capital. While demand for places to live is expected to outstrip supply over the coming decades, it’s no surprise that property investment in London continues to be appealing. We expect an additional one million households to be renting by 2021, with the highest demand in London.
Top quality corporate tenants continue to compete for the best properties. Dexters Group Lettings Managing Director, Alex Harrington, says: “We worked with over 10,000 corporate tenants in 2016, resulting in some excellent long-term tenancies for our clients. We expect that trend to continue into 2017.”
Across London there are many emerging districts where property values will rise quickly with great rental yield returns. Crossrail, the most ambitious infrastructure scheme to be carried out in London in the last twenty years, will facilitate travel in the capital and rejuvenate both established and emerging districts. Good transport links and investment in infrastructure have often had an impact on property price values. We believe the Crossrail project will re-energise both central London and those areas on its outskirts set to be served by the new Elizabeth Line.