Unique Buying Environment Driving London Housing
With the stamp duty holiday in place, the London housing market has been extremely busy of late. While there have been some concerns that remote working will see people flee the capital in great numbers, this hasn’t been the case.
The stamp duty holiday, where buyers can save up to £15,000 on the overall cost of buying a home, has been helpful for buyers in and around London. The cost of London property means buyers are likely to enjoy a greater saving in the capital, than in most major cities and towns around the country.
Many factors drive demand for London property
However, there are also other factors impacting the London property market, and this is driving activity right now.
One thing that we have seen, and which has been referenced by other professionals in the London property market is the number of overseas buyers purchasing without carrying out a traditional viewing.
It is perfectly understandable that people aren’t willing to travel to London from their own country right now. It is also easy to see why many people who are based in or near the capital would be unwilling to carry out a traditional viewing at this time.
Virtual viewings are useful, and likely to remain a small part of the housing market, but it is no substitute to seeing, feeling and touching a property at first hand.
However, these are extraordinary times, and the opportunity might not be the same when the market moves forward.
Of course, the property will still be assessed before the deal concludes. If a significant problem arises, the buyer still has the opportunity to pull out of the deal, so it is not as if there is no safety mechanism for a buyer to rely on during these challenging times.
London property will always be in demand
There is a range of factors driving activity right now, including:
- The stamp duty holiday which runs until 31st March 2021
- The expected 2% surcharge for overseas property buyers, which is expected to start in April 2021
- An attractive exchange rate
- Property prices being more affordable right now than they were in the peak of 2016
When you combine these elements together, it is understandable overseas buyers are keen to purchase property in London. The demand has also been present in investors snapping up blocks of flats, as well as individual buyers purchasing property for their personal use.
While Brexit is likely to impact the utility of London, there is no way the importance of London is going to diminish anytime in the hear future. London benefits from well-regarded educational establishments, a universal business language, a highly desired culture and the GMT time zone.
Even though there will be changes in how business operates in and with London from 2021, London is set to remain the ideal hub for so many people and businesses.
If you are interested in our lettings or property management services or you are looking to buy, sell, let or rent property in or around North West London, call us on 020 8459 2530 and a member of our team will be happy to help.