One of the UK’s largest online estate agents, eMoov.co.uk, has conducted a study that looks into the demand levels for properties located in prime central London. After the initial research, the property experts went on to look at the demand for properties in London’s most prestigious areas, such as Chiswick and Primrose Hill. They studied the amount of properties that were sold and compared it to the amount of properties that were on sale in order to observe the supply and demand numbers in 17 areas in the capital.
The property market in London has been thriving in recent years, which has led to a high demand for properties and has also pushed the prices up. Foreign investors look at London properties as a safe haven to put their money into, especially when compared to other countries like Russia and Greece, which are suffering from an economic downturn.
The supply of London properties is nearly always lower than the demand and this ensures prices are always on the high side, with this trend continuing as the UK began to recover from the worldwide economic crisis that hit a few years ago. The low supply numbers are great for keen investors and the population of London is rising, which means there are always more people looking for new housing.
The research conducted by eMoov shows us that the demand for properties in prime areas in London has increased by 0.7%, which is good news all round. But which areas are most attractive to buyers and which areas are being shunned?
The study shows that areas including Fulham and St James’s have stayed the same as last year in terms of demand for properties in these areas. Whereas the demand for properties in St Johns Wood has decreased by 3.3% but there is better news for property owners in Islington, where demand has increased by 7.4%. Another area to enjoy an increase in demand is Maida Vale (4.4%), however Fitzrovia seems to have lost some of its appeal as demand is down by 2.7%.
The area in highest demand at the moment is Chiswick, up by 10.5%, and there are a few reasons for this. The population is rising, there are good schools in the area which attracts families and there are also useful transport links into central London for commuters.
Standing in stark contrast to the popularity that Chiswick is enjoying is Primrose Hill, where demand has dropped by 4.7%. It could be argued that this drop was due to the imposed Mansion tax that was set to be imposed if a Labour government came into power. Buyers may also have felt put off by the area as over half of the homes are rented as opposed to bought out right.
While the 0.7% increase in demand for properties in London may sound like a small figure, it is actually high in the housing market. This significant increase can have an influence on investors and buyers all over the world, as London continues to boost its appeal for being a hugely attractive place to buy property.