This news comes as no surprise to us. "The London property market has proved resistant to economic or political influences; the first half of 2016 saw our offices break all records, despite stamp duty changes and the EU Referendum. We remained busy throughout the year and expect to produce very good results into 2017,” reports Andy Shepherd, Dexters Managing Director.
Increasing numbers of people are choosing to rent so that they don't have the responsibilities of owning a property and can live there when they chose, hassle free and flexibly. Investors are out in force as there are reliable returns from a vibrant lettings market. London attracts investors as well as homeowners who want to enjoy life in the buzzing city, so demand is strong from local, American and European buyers. The capital is an increasingly popular city to live and work in, and many new and improving districts are emerging around the capital. With demand for places to live is expected to outstrip supply over the coming decades, it’s no surprise that property investment in London continues to be so appealing. We expect an additional one million households to be renting by 2021, with the highest demand in London.
Buyers are jumping in where they see good value, good locations or both, and we expect this trend to continue into 2017. We are seeing a high demand for property from local and overseas buyers, both owner occupiers and investors, all saying that they feel confident about the market. Buyers and investors both tend to take a long-term view when buying property, particularly in London, so they aren't deterred by short-term influences.
Investors recognise that London is unique as a safe bet in terms of property as an investment - regulation remains a light touch and the city continues to attract new investment from around the world. We expect property transaction numbers to increase sharply in the opening months of 2017 – homeowners who have been putting off moving are on the march and new buyers and investors are looking to secure property in a safe yet vibrant and lucrative market.
Despite Government changes on loan interest and the introduction of higher stamp duty in April 2016, the overwhelming majority of landlord investors remain undeterred. The medium- to long-term view they are taking means that the investment market is staying strong. We expect to see a slight price adjustment as purchasers factor in the higher stamp duty, but that’s nothing new as we often see prices ebb and flow during the year. We expect property prices to continue rising steadily into the new year and that they will double by 2030.
Top quality corporate tenants continue to compete for the best properties. As Dexters Group Lettings Managing Director Alex Harrington says, “We worked with over 10,000 corporate tenants in 2016, resulting in some excellent long-term tenancies for our clients. We expect that trend to continue into 2017.”
With 28 offices in Central London and 60 across the capital, Dexters is London’s leading independent Estate Agency. Dexters’ lettings teams are passionate and knowledgeable about the areas they work and live in. Whether they are providing a rent managed or fully managed service, Dexters’ employees are there to give advice and manage the assets of their 20,000 landlords. As Alex Harrington says “We work hard to get our landlords really good returns on their investment over many years – we see ourselves as their asset managers.”
Across London there are many emerging districts where property values will rise quickly with great rental yield returns and we are always happy to give help and advice if you are considering growing your portfolio.
London is now home to almost a fifth of the rental properties in the UK. There are 1,048,000 houses in the private rented sector in London, almost a fifth of the 5.3m in Britain as a whole. A series of government measures have been disquieting the sector. In April this year, the rate of stamp duty was increased for people buying second homes, and in his Autumn Statement, chancellor Philip Hammond abolished letting agents' fees for renters, leaving landlords to pick up the bill. Andy Golding, chief executive OneSavings Bank, said: "Confidence is returning as landlords take action to limit the damages to their finances. The use of limited companies is soaring, and rents are increasing, even after one of the biggest surges in rental supply in recent history."