Market Performance
- UAE buyer interest for prime London properties remains steady despite the ongoing background of Brexit, the impact of COVID-19 and ensuing lockdowns. we witnessed a steady increase in demand from UAE buyers as they identified opportunities with the aid of virtual viewings.
- However, most buyers, particularly those looking for properties at higher price points (above £5 million) were reluctant to conclude purchases virtually until the easing of travel regulations permitted them to view these prime properties in person.
- The London prime residential market has picked up pace in transaction activity since the easing of the UK’s lockdown restrictions in May 2020 and continues to see a significant increase in activity in Q3 2020 with a rising number of offers and exchanges.
- Historically, September witnesses a rise in new instructions as sellers bring their properties to market post summer and this year has been no exception despite current uncertainty.
- According to data from Lonres, August and September 2020 have been particularly busy for London’s prime market.
- The number of new instructions in September this year almost doubled compared with the same time last year and was 38% higher than the September average between 2010 and 2019.
- This rising trend continues with October seeing the fourth consecutive monthly rise in under-offer volumes – up 10% on October 2019.
- The London market has also seen a shift in buyer demand, with houses being more in demand than flats, predominately driven by domestic buyers incentivised by the stamp duty holiday and the need for further space in the wake of COVID-19.
- Splitting out transactions in October 2020 by flats and houses shows flat sales fell 2% compared with the same period a year ago, whereas the number of houses sold increased by 25% over the same period.
- New instructions continued to increase in October and are up 68% on the same month a year ago and 37% higher than the October average over the previous five years.
