London’s average property price has escalated back to its 2017 high, according to the latest official UK House Price Index.
The branded residences sector is “more diversified than ever before”, declares Savills, as new players from the fashion, culinary, celebrity and design world muscle-in on an area traditionally dominated by international hotel brands.
Redfin has reported a significant increase in high-value home sales in the USA, while more affordable markets dwindle.
“Anyone worried about the future of city life should take reassurance from the 21% increase in under 30-year olds starting new tenancies compared with the same period prior year,” notes the CEO of London Central Portfolio.
Knight Frank reports that £1.13bn was spent on £10m+ homes in London in the first eight months of this year – 16% more than the £977.5m recorded in 2019.
A V-shaped recovery in equity markets has been a boon for the richest people on the planet, report UBS and PwC, as global billionaire wealth surged by more than a quarter between April and July this year to reach a record high.
Savills has revised its prime rental price forecasts. Prime London rents are now expected to fall by 3% this year, with inflation of +7.6% over the next five years. Leafier locations outside the capital, meanwhile, are set for 3.5% growth in 2020, and +11.5% by the end of 2024.
House prices are up 2.6% on the year, according to Zoopla, but buyer demand is beginning to cool.
Agreed sales of detached 4+ bedroom houses more than doubled from August 2019 to August 2020 (+104%), reports Rightmove. Sales of other three- or four-bedroom homes were up by 55%. Transactions involving smaller homes (two or fewer bedrooms) also increased, but to a much smaller degree (+36%).
London planners are less likely to give a green-light than authorities in any other UK region, according to some research by Comparethemarket.
“The latest RICS survey provides firm evidence of a strong uplift in activity in the housing market which should help support the wider economy gain traction over the coming months,” says RICS’ Chief Economist Simon Rubinsohn. “More of a concern is the pick-up in prices which could intensify issues around affordability in some parts of the country.”
The latest Savills buyer survey reveals “a greater urgency in the desire to move home”, allowing the top-end estate agency to predict that the current surge in buying activity will continue beyond the summer – particularly in country markets.