Today we want to talk about London’s property market and the effect of removing COVID restrictions. The COVID-19 pandemic has impacted the housing market profoundly over the past few years. At the beginning of the pandemic, there was a mass exodus of people from London, in particular, as they sought to escape the busy city life and relocate elsewhere to somewhere quieter, as stated by the reasons that you can see here.
However, as COVID restrictions in the UK have been fully restricted, there has been some impact on how the current state of the property market has affected people wanting to relocate elsewhere.The
Current State of the Property Market
- Increase in Demand
The lifting of lockdown restrictions has led to an increase in demand for properties in London as people are keen to return to the city. This is especially true for young professionals who have been working from home and are now eager to return to the office.
This increased demand puts upward pressure on prices and we are already seeing a recovery in the London property market. According to the latest data, the average price of homes in the UK has continued to rise, with a 10.8% increase over last year’s average selling price taking it all up to £278, 123 by February 2022.
- Low-Interest Rates
One of the reasons to be confident about the London property market is low-interest rates. In March 2020, the Bank of England cut interest rates by 0.25% to a record low and then again on the 19th, this time only reducing them by 0.1%, and there is no indication that they will rise any time soon.This is good news for buyers because mortgage repayments will remain low. It is also good news for sellers as it means that more people will be able to afford to buy their property.
- Economic Recovery
The UK economy is slowly but surely recovering from the pandemic, which is good news for the property market. According to The Office for National Statistics (ONS), the UK’s economy is showing signs of recovery after a period in which it appeared to be deteriorating.
In 2021, GDP had increased by an estimated 7.5%, following a decrease of 9.4% the previous year. This is good news for the property market as a strong economy is usually associated with a healthy housing market.
Londoners who are thinking about buying or selling property have some good news. Prices in the capital are rising and there is every reason to believe that they will continue to grow in the coming months.
If you are thinking of buying or selling property in London, now is a great time. The market is beginning to recover, and prices are starting to rise. Whatever your plans, it is always worth speaking to a property expert to get the most up-to-date advice.
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