PCL outperforms the rest of the UK residential market

Following a period of low transactions and static price growth, during the pandemic, buyer confidence is returning with London outperforming the wider markets. PCL apartments have consistently surpassed both Greater London and England & Wales for the past 8 months. Meanwhile, Greater London outperformed England & Wales over the last 5 months.

We have seen the return to apartment living as buyers and tenants want to be centrally located, close to the West End, its fine shops and restaurants, children’s education and the financial centre. The country house market had a booming 3 years during the pandemic but now the reality of living outside of London is starting to become less attractive. This market significantly over inflated and prices are now beginning to fall due to local domestic and economic factors.

As the spring market approaches and with stabilising inflation and interest rates, buyers are eagerly anticipating new stock to replenish the market, positioning themselves for potential opportunities.

Is now the time to buy?

A highly competitive rental market has prompted many first-time buyers to get onto the property ladder. With many supported by the ‘Bank of Mum and Dad,’ we have been assisting with sourcing opportunities available on the market. ‘Nearly new’ builds are a great option for young buyers, offering a financially viable alternative to brand new apartments. LCP’s Furniture Packages have been popular amongst our buyers who want a turnkey property they can move straight into.

Demand for buy to let apartments continues as attractive rental yields and bottom prices draw in investors. Liam Monaghan, MD, was recently a guest writer for The Sunday Times, highlighting the reasons to invest in central London property and why he believes landlords are quitting the market too soon. Read the full article here.

With modern comforts, state of the art amenities and concierge services, ‘new builds’ have become a popular investment choice. However, purchasing a new build is very different from other property purchases and Kevin Coughter, our Head of Private Clients, would be delighted to chat through the differences with you.

Education continues to be the key driver behind property investment in London, particularly for buyers in Singapore and Hong Kong. Many have purchased small pied-a-terres for their children attending school or university here. Portfolio diversification will continue to be a key theme in 2024.

Investment Hotspot: Bayswater, W2

Bayswater has been pinpointed as the next best investment hotspot as apartment values stand nearly 10.0% below the 2015 peak. An area with beautiful historic architecture, it has benefitted from some much-needed regeneration in recent years making it a good place for investors to keep an eye on.

Average rents stand at £3,230 pcm, up 41.7% in the last three years. It has excellent transport links and is right by the Royal Park, Hyde Park. Exciting developments such as the Six Senses Hotel and Spa at Whiteleys are helping to enhance the appeal of the area by bringing in new amenities and visitors. What once was a rundown high street filled with low class hotels is now filled with high-end developments with restaurants, bars and spas.

Property prices have historically been lower than some of its prime neighbours (Hyde Park, Notting Hill and Kensington Gardens) but the ongoing regeneration will undoubtedly have a positive impact on property values in the long-term.

Investors therefore have an opportunity to purchase a buy to let in Bayswater at a discount, whilst taking advantage of the strong rental yields.