Flats are hot again as first-time buyers search for smaller houses in London.
London flats are making a comeback after falling out of favour during the epidemic and the “race for space.”
Demand for smaller houses has soared due to the release of pent-up demand from first-time buyers who put off purchases during Covid lockdowns.
According to one poll, flat prices are surpassing the broader property market in five London boroughs: Barking and Dagenham, Greenwich, Newham, Hackney, and Tower Hamlets, reversing a two-year trend.
The increase in property prices have almost caught up with the broader market in eight additional boroughs: Wandsworth, Lambeth, Southwark, Waltham Forest, Lewisham, Islington, Hammersmith and Fulham, and Westminster.
“London is on manoeuvres once again,” said Lucy Pendleton of agency James Pendleton. “There has been no mass exodus as many younger buyers prefer to rent while the epidemic was still fresh in their minds, which is why the lettings market has been brisk.”
These buyers who have put their purchases on hold initially are faced with the fact that financing rates are rising. Many of them are first-time home owners who are frantically trying to catch up. As a result, we anticipate a strong performance in flat prices in London in 2022.
During the epidemic, flats with little outdoor space were more difficult to sell as purchasers sought bigger residences with gardens. Because of the restrictions due to Covid, more and more people realised the luxury of outdoor areas and hoped their new home would have access to open spaces.
In the past year to September, the average price of a London apartment increased by 0.74%, compared to a 4.92% increase for terrace houses; a 7.33% increase for semi-detached homes; and a 9.18% increase for detached houses.
Property Portal, Rightmove, also claims to have noticed a similar substantial shift in the pattern in recent months. It has observed a greater surge in demand for flats in London, 27% last month over last year, than for any other property.
“This aligns with the revived desire to live in London, which momentarily reduced owing to constraints this time last year,” Director of Data Services and Overseas of Rightmove, Tim Bannister said.