February 2023 Newsletter
Here is our latest round-up of the current talking points in the London property market.
Who has a Crystal Ball? – What do you expect the market to do this year? This is a question we get asked on an almost daily basis. Invariably at some point during our response, we point out the obvious – we don’t have a crystal ball – and the property market is like any other market, predicting the future is difficult because we cannot foresee world events.
This time last year we did not anticipate the war in Ukraine and the impact that would have on inflation and interest rates but despite this we had one of our busiest years on record. Although demand continued to be strong throughout the year the Financial Times recently reported that property prices in central London have fallen by 24 per cent in real terms over the past five years.
It is an interesting statistic, but we do always feel it is an error to discuss London as a whole because the fluctuations across boroughs are marked. For example, the continued popularity of Hackney saw prices rising by 13% year on year, while prices in Prime Central London fell on average by nearly 6%. HPI Nov 22
The predictions all seem to be for a drop in London prices in the coming 12 – 24 months. The Office for Budget Responsibility said at the end of 2022 that it expects house prices to fall for the next two years, predicting a drop of 9%.
As is widely reported, rents continued to increase in 2022, Foxtons recently reported that they saw an increase of 20% in rents last year. We would quite comfortably predict this rise will not continue in 2023.
Bustling Belgravia – Over the years many of our clients have overlooked Belgravia in favour of Mayfair and Knightsbridge which seemed more happening. It was seen by some as a bit of a dull backwater but to my mind it has always had a very appealing understated charm. The opening of Eccleston Yards in 2018 and new tenants moving into Elizabeth Street has meant it is now becoming a destination in its own right. This together with its traffic free streets and an ideal location between Chelsea, Knightsbridge and St James means that it no longer takes much persuasion to convince clients to buy there. We recently helped locate a family from Cheshire to the area and we found a London base for some American clients . Prices rival those of Knightsbridge and Mayfair but it has an excellent stock of family houses and big boned lateral apartments which can be difficult to find in neighbouring areas.
Hoxton moves west – Since the big launch in Hoxton in 2006, the Hoxton hotel group is now well known for its hip hotels. December saw the opening of the fourth London venture on Shepherds Bush Green. Over the years there has been much talk about the neighbourhood being up and coming but it may have finally arrived. Property prices in the area compare favourably with its east London counterpart.
Reach for the sky – the first stretch of the Camden High Line has just received the green light from planners. Running from Camden Gardens to Royal College Street. It will see the transformation of a stretch of disused railway, formerly part of the North London Railway, into a new elevated park and walking route. In total, the Camden Highline will run for 1.2km. The project is set to be built in three sections, beginning at Camden Gardens to Royal College Street, then east to Camley Street, and finally to York Way.
It finally happened – Yes, both the Elizabeth Line and Battersea Power Station have finally opened. We have been talking about both for years.
We were there to take a ride on the opening day of the Elizabeth Line, since then further stations along the route have opened and the final timetable will be operational from May 23. We still feel there are still pockets along the route that will see further house price growth, for starters Farringdon where it is still easy to buy an apartment for around £1000psf. Amazing given how central and well connected it is.
It has been easier to watch the progress of the developments along the river around Battersea Power Station. In fact, we have carried out a number of searches for clients across the Nine Elms area in recent years. The opening of the Power Station to the public late last year, is seen by many as the cherry on the cake, even though cranes are still dotted around the area. There is no doubt that what was a wasteland has been completely transformed and it is great to see the river path joined between Battersea Park and Vauxhall. Only time will tell which are deemed to the better blocks in terms of management and popularity.
To Find Out More, Get in Touch
We very much hope that you find this update concise and informative. Please do feel free to contact us if you would like to discuss any aspect of the London property market.
Regards,
Jane Wood
Founding partner