The London property market has proved resilient in the face of economic uncertainty and short-term political upheaval. Buyers are jumping in where they see good value, good locations or both, and we expect this trend to continue into 2017.
We have identified a high demand for property from local and overseas buyers, both owner occupiers and investors, all saying 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, while new buyers and investors are looking to secure property in a safe yet 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 remains 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 anticipate property prices to continue rising steadily, and that they will double by 2030.
This week Halifax proclaimed that the housing market is in fine fettle, with a shortage of supply continuing to push property prices upwards — particularly outside London. According to Halifax, prices in December were 6.5 per cent higher than a year earlier — compared with a 6 per cent rise in November — and they jumped 1.7 per cent month on month, taking the nationwide average cost of a home to a high of £222,484. The Halifax figures appear upbeat, so what are the predictions for 2017?