The evenings are slowly getting lighter and brighter, and the mild weather makes it feel like spring is already here. Better still, Covid finally appears to be in full retreat and the economy is bouncing back nicely. To add to all that positivity, the housing market has started 2022 strongly for both sales and rentals, especially in London. Appropriately, for the month of love, it seems our passion for property remains undimmed.
So, what’s going on? In London, we have been talking for some time about the boomerang effect, as those who fled the capital during the various lockdowns return. With this process now building momentum, demand for London’s property is increasing exponentially. The rental market tends to be the first to react to change, as it is more flexible. The gap between supply and demand in the sector has now grown to such an extent that the competition for the best rental properties has doubled (up by 94%) when compared to this time last year and rents are now back above the level they were at pre-Covid.
And the sales market is not far behind. The base rate rise, so far, has had little impact. That may be because the numbers are not that big - two-thirds of homeowners are either on fixed rates or do not have a mortgage at all. For the remaining third on a variable rate, they will, on average, only be paying £25 more per month (or £300 per year).
And talking of the month of love, although estate agents are not always seen through romantic lenses, in many ways we are not unlike matchmakers - helping people find their perfect homes, guiding them through the process, showing them what’s possible and smoothing their path all the way through to the big day – the day they move in! With supply levels constricted, building strong relationships between all the relevant parties is more important than ever. So, if you’re thinking of moving home, or are a landlord wanting to make the most of a buoyant market, you know what to do – just give us a call and we can find you your perfect match!
That about wraps it up for this month. If I don’t hear from you beforehand, I’ll be back again in March and, by then, we really will be in spring!
