QUARTERLY PROPERTY MARKET INSIGHT - Q2 2019


QUARTERLY PROPERTY MARKET INSIGHT - Q2 2019

Sales and lettings property performance Q2 2019

SALES AND LETTINGS PROPERTY PERFORMANCE IN CENTRAL AND EAST LONDON - Q2 2019

The first few months of 2019 saw average property prices struggle to record much growth compared to the previous year, and this downward trend has continued over the last three months. Central and East London has been particularly hard hit. Property transactions have also slowed.

 

The rental market in Greater London is more positive, with continued growth when looking at the annual percentage change in rents over the past three months. However, Central and East London is showing little change in average rents compared to the same period last year.

 

Flats still dominate the new build market across London, but new build sales are down compared to same three months last year.

 

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 last three months have painted a fairly negative picture when we compared the average year-on-year rents in the capital. Prices are down on last year, although 2018 did see strong rental growth overall.

 

Greater London experienced a -1% drop in average rents in May, with Central and East London down -5% for the same month.

 

However, the ongoing popularity of Central and East London is shown by the average house prices; the latest data shows that properties in this area achieved an average price of £587,958, compared to £489,376 in Greater London.

 

 
 

Graphs referenced:
Transactions by month

   

After a steady decline over the previous quarter, property transactions in the Central and East London began to rise during February and March, with 338 and 419 properties sold respectively. May dipped to a total of 286 transactions. Overall, property sales are struggling to reach the same levels as last year. For the same period last year (March – May) we saw an average of 483 properties change hands.

 
 

Graphs referenced:
12 months: Transactions by property type

 

When looking at property type in Greater London, flats still perform well, making up just under half (54%) of purchases. Terraced properties comprise 27% of all purchases in the capital. Apartments are extremely popular in Central and East London, comprising 91% of transactions.

 

 

LETTINGS PROPERTY

Graphs referenced:
Annual % change in rents

 

In the lettings market, we can see a continued and strong improvement when looking at the annual percentage change in rents in Greater London. June saw just over 2.5% growth compared to the same month the previous year.

 

However, although moving in the right direction, Central and East London has been slower to improve, with very little change when we compare average rents for June 2018 vs June 2019.

 
 

Graphs referenced:
Average monthly rents by property type

 

Average rents for semi-detached properties in Central and East London have dropped significantly when compared to the previous 12 month period. However, detached properties in the same area buck the overall trend by clocking some significant growth. Greater London paints a healthier picture across all property types, with growth across the board.

 

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 largest 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.

 
 

Graphs referenced:
Profile of properties let

 

Flats and apartments are still overwhelmingly popular rental choices across the capital. They make up 77% of properties let in Greater London, and 90% in Central and East London.

 

 

NEW HOMES PROPERTY

Graphs referenced:
Change in average price by property type

 

Overall, the whole capital is reporting a dip in average new build prices compared to the previous year, with Central and East London hardest hit. However, we do tend to see a slow-down in the run up to summer and the impact of external pressures such as Brexit cannot be ignored.

 
 

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 99.7% in Central and East London.

 

 

Summary

In the sales market, although both areas are down when we assess the annual change in average prices over the same period, Central and East London has held up better when compared to Greater London over the past 12 months.

 

The overall picture is brighter in the lettings market, with Greater London reporting strong growth in average rents vs the same period last year. Central and East London has remained fairly flat over the past three months.

 

When looking at property type, flats are still overwhelmingly popular in the rental and new build markets across London, although the percentage change in annual prices in the new build market is down over the past three months.

 

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.