Sales and lettings in London last month were stronger than expected according the a report from prime central London residential agency W.A. Ellis.
According to the agency, stock of suitable product remained low – especially in the market priced at below £2 million. Lettings enquiries were also up 50 percent up from July, but poor quality properties are sitting on the market, noted the agency.
Richard Barber, partner in residential sales, said: “August has been stronger than expected, with 12 sales agreed over the past four weeks including multiple sales at our prestigious Jermyn Street development in St. James’s. We have currently agreed terms on 80 percent of the units with strong interest in the remainder.
“There is renewed appetite for investment within the prime central London market, but stock levels are low, particularly below £2 million due to the stamp duty threshold. As such, we are anticipating strong price increases within this sector of the market over the coming months.
“At the opposite end of the spectrum, we successfully exchanged contracts this week at a near record price of £2,590 per sq ft for a ground and lower ground floor apartment in one of Knightsbridge’s finest garden squares,” he added.
Lucy Morton, senior partner and head of lettings at Prime Central London, said: “Enquiry levels in lettings are 50 percent up from July. High net worth students are now competing over studios and one bedroom flats, and we are noticing renewed activity in the family house market.
“During the last few months, stock levels have increased in London, and competition to secure a new tenant has been heightened with a wider spectrum of properties for them to choose from. Tenants’ demands have also risen, and the properties that rent first are the ones that are in tip-top condition.
“If there is time between tenancies, it’s a perfect opportunity for landlords to reassess their properties and redecorate where necessary in time to welcome the new wave of applicants after the summer break.
“It is a well known fact that yields are low as rents have not risen at the rate of the capital values. In fact, rents overall have fallen on average by circa 2.5 percent since the beginning of the year as currently supply outweighs demand. It’s the poor quality properties that are sitting on the market, and this is obscuring the price and void period statistics.
“It is absolutely essential that properties are priced correctly and presented in their best possible condition as newly refurbished flats and houses that are of a high standard are still achieving record breaking rents.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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