Greater London region saw houses prices grow by 7.5% in Q3
Strategic property consultancy Cluttons have released their quarterly London sales and offices review for Q3, showing Greater London region saw houses prices grow by 7.5% in Q3.
The study reveals that the London rental market is performing very strongly due to returning office workers and the usual seasonal boost from students and graduates.
Sales in London saw positive growth compared to the rest of the country, although the capital does fall behind trend levels. The Prime Central Market (PCL) also faces problems with a limited amount of stock available and a difference in price expectations between vendors and buyers.
Greater London – Sales & Rentals
The Greater London region saw houses prices grow by 7.5%, closing the gap between London and the rest of England.
Sales in London reversed the falls seen last quarter; however, rents in the capital are still falling according to the ONS index, compared to growth of over 2% in the rest of the country. However, this measure is based on rents paid for existing tenancies, so it does not respond to changes in the market very quickly.
More up to date market reports for London are far more positive, although it is being compared against a baseline set in the middle of the pandemic, a time where the market was far more volatile. The September index recorded annual rental growth in London of 6.4%, only slightly trailing the 7.6% for the rest of the UK.
According to Rightmove, London moved back into positive territory at +2.7% after a quarter-on-quarter increase of 3.6%. Rightmove’s sub-regional data suggests that the London recovery in central areas is picking up, with quarterly growth of 5.6% in inner London.
Prime Central London
According to review, Prime Central London Sales have taken a more negative turn with sales falling by 1.3%, bringing the annual change to -5.1%. On a more positive note, rents have bounced back strongly, growing by 6.7% on a quarterly basis, with annual growth at 12.2% and seeing most of 2020’s losses recovered.
The PCL rental market recovered strongly in Q3, with values up 11.6% compared to Q2. The volume of lettings agreed was up 32.5% over the same period.
James Hyman, head of residential agency at Cluttons, said:
“The rental market recovery picked up pace in Q3, with demand driven by corporate tenants returning and executives in the City and Canary Wharf heading back to their offices. The sub-£1000 per week market is extremely active, driven by graduates starting jobs, the opening of universities, and the return of international students.”
Click here to view the review.
Kindly shared by Cluttons
Main photo courtesy of Pixabay
