Greater London Properties

Predictions for London Property Market

Despite the lockdown due to pandemic, the London property market continues to rise and witnessed busiest-ever January 2021. The Government of the United Kingdom has taken various measures to negotiate the series of obstacles posed during the last year. But still, the future doesn’t look very rosy in the years to come as there are several factors to tackle.

Measures implementation by UK Government  

In the last year, the government seemed to be very supportive to give impetus to real estate. The tax holiday was given till 31 March 2021 to encourage home buyers. The government also allowed the short extension to benefit those already going through the buying process. Such types of steps can help to boost the real estate market.

As per the reports released by PwC, the population of London is expected to decline for the first time in the last thirty years. It is expected thousands of people to leave London in 2021 due to work-from-home facility or loss of jobs.

Less population means fewer transactions in the property market and slow growth.

There is a worry that the people are suffering job losses due to lockdown resulting in a massive impact on consumer confidence and affecting buyer’s demand in London.

On the other side, no one can escape from the fact the last year made us all understand the significance of home more than ever. The desire to own your home will be the significant driver to push the demand in the property market in the future.

Job Conditions 

London has enduring popularity as a perfect destination to work and live. Nestled in a magnificent green landscape, London is a home to over eight million trees, three thousand parks stretching over thirty-five thousand acres of land. It is incredible to see a plethora of green cover all over the city.

With over eight million people, there are various facts regarding housing in London. London has a strong housing market. Here we find an extensive range of properties to buy and rent across London.

15% of England’s dwellings are in London catering to the housing needs of more than eight million people.

Property for sale

London is one of the most expensive cities to buy property. Despite challenging conditions, the London property market has witnessed excellent sales growth due to the stamp duty holiday. Buyers took the advantage of relaxation given in stamp duty and the falling asking price for luxurious apartments in central London. The property in the upper tier continues to recover. We expect, there will be a large number of flats and house buyers especially in the prime locations of London.

Property for rent in London

The rental property market in central London is very challenging, but there is a superb demand in the outer area of London due to the growing demand for work-from-home and less requirement to be close to offices. Central London is drawing people’s attention due to its low rental value. As per Knight Frank's reports average rent in prime central London was reduced by 13% that is almost equivalent to the levels seen during the 2009 global financial crisis. Demand for the rental house has reduced from corporate tenants and overseas students due to two successive lockdowns.

Property for investment in London

In the current volatile stock market and low-interest rate conditions, property seems to be the safest bet in London.

London’s population has grown significantly over the past two decades whereas the new houses were built a lot lesser than that which created an imbalance, consequently rise in prices. At the same time, govt is also providing stamp duty holiday and inducing buyers to purchase their dream home in London. Overseas investors are still observing the long-term appeal in the London property market.

London real estate investments for overseas investors

London is a highly attractive investment destination for overseas investors. London is considered to be the safest haven for overseas investors, and right now it is catching the eye of the investors due to the strengthening pound and weak foreign currencies. It seems to be the right time for investment in London.

London property investments for Indians

There are no restrictions for Indians and non-resident Indians to buy property in London. It is a fairly straightforward process for Indians and the process is identical to the nationals of the United Kingdom. Under the Liberalised Remittance Scheme (LRS) of the Reserve Bank Of India, resident Indians are allowed to remit the sum of $250,000 per financial year. Additionally, purchasing properties jointly with your family members widens the investment options as the remittance limit is applicable individually. As per reports published by Night Frank, a real estate consultancy firm, there was an 11% year-on-year rise in the number of Indian buyers in London in the twelve months to June 2019. However, there is a slow down in investment in the year 2020 due to pandemics.

2021 outlook for London Property Market

The London real estate markets largely depend on the country’s economic recovery from the disruption posed by COVID-19. The London property market is facing the challenges of pandemic and facing uncertainty in 2021. The last year was extremely challenging and it is difficult to predict how the job and economic scenario is going to be in the current year.

In 2021, the London real estate market likely to witness strong foreign investment. However, the mainstream London property market likely to struggle and susceptible to fluctuations in the current year due to the political and economic situations of the United Kingdom.

As the country continues to navigate through the twist and turns posed by the pandemic, the property market growth likely to be slow. Additionally, if the norm of work-from-home continues further, investors, homebuyers, tenants may explore other locations of the UK where they can earn better returns.

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