Race for Space’ – prices fall in upmarket London

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Villa Borghese, Rome

Real estate trends keep changing from time to time based on the events that take place in the country. London is the fastest growing city in the UK and the population size is growing at the rate of knots. Many people from different parts of the world are seen moving into the UK. With this expanding population, the demand for properties for rent and sale is soaring with every passing day. Investing in a London property requires a stable job and maintaining balance in various other aspects. The neighbourhoods of London are diverse and unique and make people feel at home. The properties available in London meet the taste of all kinds of people. From modern flats, service apartments, studio flats to detached and semi-detached homes with lush green gardens, people can pick the best option that suits their budget.

The property market in the UK has always been a matter of talk and has intensified in recent times. Compared to other parts of the UK, central London and several important boroughs of the city hold higher property value. Among the many places in the UK, London is the favourite destination for overseas buyers to make a property purchase. The recent trends have altered the property buying pattern causing a fall in prices in the prime regions of London. People have started to look for other options, which were a rare pick in the past. Buyers are now approaching bungalows for sale in Bicester, the countryside and other areas of England and the UK more than ever. People with high income are now looking for cost-effective yet comfortable areas rather than a jam-packed city. This sudden change in preferences from a large set of people has led to the drop in property prices in London.

PRE-PANDEMIC HOUSING MARKET

London is home to a wide range of homes and neighbourhoods. There are quiet streets, greenery-filled regions, and bustling streets in different boroughs of London. People choose to live according to their comfort, budget, distance from the workplace and other essential amenities. Modern flats with a spectacular view were preferred by most residents because of the budget constraints and comfort. Most of them pick out studio flats and other apartments that are semi and fully furnished. These flats range from 1 to 5 BHK rooms which were favourable for budget-conscious people. Modern flats were at the peak of property buying options due to the increasing number of people investing in them. Most of these homes have playgrounds, and parks in the vicinity which is an added bonus for the residents. These options were overpowering other properties like large detached homes, Georgian and Victorian builds keeping it as the last choice to consider. Whereas overseas buyers preferred the latter as it is an excellent selection for the sake of investment. 

DEVIATION IN REAL ESTATE TRENDS

The property market and people’s options remained consistent for a long while till 2019. A sudden stir was created by the pandemic, making people think twice about their preferences. People started working from home, and that was where they spent most of their time. The lockdown phase created a massive impact on people’s way of living. Off late, it also influenced their choice of properties to a great extent. Residents longed for life-sized homes with large gardens so that working from home does not suffocate them anymore. They make sure to have a separate space for a home office to stay focused and work comfortably. With the extended stamp duty holiday and low-interest rates for mortgages, people made use of this opportunity to buy bigger homes in the suburban region.

The demand for cottages, villas and detached homes with large open spaces has only increased since then, and its prices shot up by 2.9% compared to last year. This change ultimately affected the prices in upmarket London. Demand for flats dropped suddenly, and this is a continuing market trend. Flat and apartment prices in Central London faced a 1% dip as everyone had other options. People are ready to move outside the city life to stay in a calm neighbourhood. The race for space in the UK only sped up, where people who could afford to move to the countryside or less populated boroughs to a larger property.

WHAT DOES THE FUTURE HOLD?

It is still uncertain whether the market trends might change anytime soon. People have now adapted themselves to the new normal, and many are comfortable working from home. In this case, bigger houses are more likely to stay on top of the buyer’s wishlist. Living in London or the outskirts has got its own perks and drawbacks. It is indefinite to predict the future of the real estate market as there might be slight to no changes in the current choices of the buyers.