London is likely to see the slowest rate of property price inflation in the coming years, according to some analysis of various property market forecasts.
Knight Frank’s annual Ski Property Index saw chalet prices climb by 1.2% in 2020, marginally down on last year’s +1.4%.
In a reversal of last year’s trend, new Rightmove data tells us that TfL Zone 6 has seen the biggest increase in property demand, while Zone 1 has seen the smallest rise compared to last year.
London’s average property price has escalated back to its 2017 high, according to the latest official UK House Price Index.
Chestertons has reported a 45% increase in new tenancies in London this September compared to last – but supply is running high, forcing many more landlords to cut rents.
Savills saw more new-build homes reservations in Q3 this year than in any previous quarter on record, while development land buyers focus on smaller sites.
Property portal predicts average asking prices will end this year 7% higher than they started it.
There’s been a “rebalancing of the market between London and the country”, says Savills, as the capital lags a sharp increase in £1m+ sales across the UK.
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.