Crisis? What crisis? London’s housing market attracted sales of £2.8bn in 2020
UK residential property sales equalled 2018’s all-time high, reaching £6.1bn last year, according to new data released by Colliers, in this report.
Investment in residential property exceeded £6bn in 2020
Their research indicates that total residential property sales in the UK exceeded £6bn, with London taking nearly half of all these sales, at £2.8bn.
Some £3.5bn of the investment was placed in the growing Build-to-Rent (BTR) sector. By the end of the year the total BTR pipeline stood at 126,085 units, a 17% increase on a year earlier.
Andrew White, head of residential at Colliers, said: “UK residential property is a solid investment option in the UK, particularly in the burgeoning Build-to-Rent sector as there is a perfect storm of a shortage of housing, and a huge affordability gap, especially for those who want to work and live in London. Over the last year the sector has grown 20 per cent and is going to continue to grow to meet the country’s housing needs.
“In addition to Build-to-Rent our cities, and in particular London, will always be attractive to overseas investors. Despite Brexit the UK is still a gateway location to Europe and America, providing access to a secure financial market and another currency to capitalise on.”
Zah Azeem, Partner at Scrivener Tibbatts adds, “The Chancellor’s announcement of a Stamp Duty holiday last Spring really helped to release the pent-up demand which appeared once restrictions were lifted. Home ownership is stretching increasingly out of reach for many first time buyers so we can but hope the government’s loan guaranteeing of 5% deposit mortgages will have the impact it’s intended, rather than making residential property an even more attractive investment for property speculators.”
“According to Colliers during Q4 2020 there were 307,000 mortgage approvals, with an average mortgage size of £211,119. Not here in Wimbledon there weren’t. The average residential sale in Wimbledon now far exceeds £500,000.”
If you would like to discuss something related to a valuation here in Wimbledon please contact Zah via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
