QUARTERLY PROPERTY MARKET INSIGHT - Q1 2019


QUARTERLY PROPERTY MARKET INSIGHT - Q1 2019

Sales and lettings property performance Q1 2019

SALES AND LETTINGS PROPERTY PERFORMANCE IN CENTRAL AND EAST LONDON - Q1 2019

The first few months of 2019 saw average property prices struggle to record much growth compared to the previous year. The latest data shows a dip in February, which is unsurprising given the run-up to Britain’s planned exit from the EU on 29 March. We can also see that property transactions in Central and East London have steadily declined over the last quarter.

 

The rental market is painting a more positive picture. Greater London has seen some strong growth when looking at the average rents during the first quarter of 2019, with the Stirling Ackroyd heartland of Central and East London recording an upward lift for the first time since July 2017. Unsurprisingly, the rental market in London is still dominated by flats and tenants under the age of 40.

 

The residential development market is well-supported by the ongoing popularity of apartments, with 94% of new build transactions in Greater London over the past year slotting into this category.

 

Important: It’s always important to remember that each property is unique and whilst these are average property sales and lettings statistics, to get an accurate value of how much you could actually sell or let your property for, make sure you get in touch with us today to book your free face-to-face property valuation.

 

SALES PROPERTY

Graphs referenced:
Average Sales Prices
Annual % change in average prices (12 months)

 

The early months of last year saw the annual percentage change in average property prices in London grow overall. This trend could amount for the disappointing start to the first quarter of 2019, although the impact of ongoing political uncertainty can’t be ruled out.

 

In general, Central and East London has consistently outperformed Greater London over the past 12 months when looking at the average change in prices, with the exception of February 2019.

 

However, the ongoing popularity of Central and East London is evidenced by the average house prices; the latest data shows that properties in this area achieved an average price of £598,195, versus £491,860 in Greater London.

 

 
 

Graphs referenced:
Transactions by month

   

Property transactions in the Central and East London have steadily declined over the past quarter, partly due to the impact of the Christmas break and external pressures. However, the winter months usually see a lower number of transactions compared to the more buoyant summer months.

 
 

Graphs referenced:
12 months: Transactions by property type

 

When looking at property type in Greater London, flats made up just over half (55%) of purchases. Apartments are particularly fashionable in Central and East London, comprising 91% of transactions.

 

 

LETTINGS PROPERTY

Graphs referenced:
Annual % change in rents

 

In the lettings market, the last two quarters show a steadily improving picture when looking at the annual percentage change in rents in Greater London.

 

However, Central and East London has been on an upward trajectory over the last six months and has just clocked positive growth of 0.24% in annual rents for the first time since July 2017.

 
 

Graphs referenced:
Average monthly rents by property type

 

Overall, average rents in Greater London are fairly level with Central and East London. When looking at property type, rents in the Stirling Ackroyd heartland exceeded the average for Greater London in three of the four categories: detached, terraced and flats.

 

Interestingly, average rents for terraced houses in Central and East London currently sit at £1,647 per month, which exceeds average rents for semi-detached properties at £1,544 per month.

 
 

Graphs referenced:
Age profile of tenants

 

Unsurprisingly, the biggest proportion of renters in London are those aged 18-29. Central and East London is particularly popular with a younger demographic, with 68% of tenants aged 18-29 and a further 25% aged 30-39. Only 6.5% of renters are over 40 years old in this area.

 
 

Graphs referenced:
Profile of properties let

 

Flats and apartments are still overwhelmingly popular rental choices across the capital – particularly in Central and East London, where they make up 90% of all let properties.

 

 

NEW HOMES PROPERTY

Graphs referenced:
Change in average price by property type

 

Looking back over the previous months, we can see a healthy spike in December in Central and East London, with January reporting a marginal improvement on the previous month when we consider the annual percentage change in prices. However, this has recently dipped across all areas in London, with Central and East London down 3.8% in February.

 
 

Graphs referenced:
12 Months Transactions by property type

 

Flats are an overwhelmingly popular choice in the capital, comprising 94% of all new build transactions in Greater London, and 99% in Central and East London.

 

 

Summary

Although the sales market is under some pressure, Central and East London has held up better when compared to Greater London over the past 12 months.

 

In the lettings market, rents are performing well when matched with same period the previous year, with Greater London outperforming Central and East London. However, the latest data for March in Central and East London shows some positive growth of 0.25%, after prolonged negative period.

 

When looking at property type, flats are still overwhelmingly popular in the rental and new build markets across London, presenting opportunities for developers and landlords alike.

 

Important: It’s always important to remember that each property is unique and whilst these are average property sales and lettings statistics, to get an accurate value of how much you could actually sell or let your property for, make sure you get in touch with us today to book your free face-to-face property valuation.

 

PROPERTY PRICES IN LONDON BY AREA

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Unless otherwise shown, the data shown is a rolling 12-month average based on latest market information from Land Registry. All data provided by Dataloft.