Posted: Tuesday 14th May 2019
There is evidence to suggest that many buyers have positioned themselves in a way that will allow them to act immediately once the current situation with Brexit has finally come to a definitive conclusion, something that we all now understand could happen with very short notice.
In the last 12 months up to March 2019 there was an 11.3% increase in new potential buyers registering interest in prime central and outer London areas. There was also an increase of 14.3% of offers made in the same areas over the same time period. This means that not only are there more new buyers than this time last year but those buyers are also making more offers. This means that there is increasing pressure to supply properties with this increasing demand.
While the demand for new properties has grown the supply of new properties has not kept the same growth. Acquisition firms have acted cautiously under the ongoing issues with Brexit and we can see this in a 12.5% decline in new listings in prime London areas over the same one year period up to March 2019.
Tax changes for landlords have prompted many to leave the rental sector completely. The latest proposed change could lead to the removal of Section 21 notices, which has also created uncertainty over how some tenancies will legally come to an end. Also, the number of buy to let mortgages issued throughout the UK is approximately 40% lower than what it was before the 3% increase in stamp duty that was introduced in April 2016.
While the number of new lettings listed in prime central London has declined 6.3% in the year to March 2019 it was the most modest decline over the last 18 months. This is due to the growing number of landlords who have re-listed on the rental market after an unsuccessful sale attempt.
Political uncertainty will always curb the activity and also spending in the property market. At Seed we look to connect both new and sophisticated investors with the properties to match their goals. We have our newly formed Retained Acquisitions Service that can source properties for our clients and also anyone looking for a retained service, and also looking to bridge the gap in supply and demand.
If you are looking to start or continue your property investment journey within prime London locations or across the UK please contact us for more information.