An active spring market has resulted in LCP receiving nearly £50 million worth of new search enquiries in the last fortnight.
Buyers are returning to the market whilst there are still discounts to be had. Just last week we secured an apartment for a UK-based buyer achieving a discount of 10% off the asking price.
With three years of pent-up demand for London property, overseas demand is returning to normal levels with over 80% of our new search enquiries living outside of the UK, rather than being purely domestic as we were previously seeing.
Despite prices of PCL apartments having only managed to hold their value since the onset of Covid-19, unlike the rest of the residential market where prices have increased, our latest data has reported substantial price growth in flats at 5% over the last quarter. This compares with only 1.4% in England and Wales and 1.1% for PCL houses. Market commentators, alongside LCP, have widely called the bottom of the market and it is predicted that PCL price growth will surpass England and Wales, both due to a surge in demand similar to the ‘Boris Bounce’ in 2019, and a lower sensitivity to increased interest rates compared with the domestic market. The window of opportunity to purchase a central London apartment at a discount appears to be closing.
Buyers are wanting again to be closer to the action that Central London offers and are willing to compromise on size and outside space. The novelty of country or suburban living is starting to wear off, particularly as commuting into London becomes more frequent as office working returns.
We have seen a 15% uptick in renovation enquiries in Q1 2023 compared with Q1 2019 as clients look to add value to their property. We recently have been instructed on a 3,300 sq ft house in Chelsea for a high-net-worth overseas family where LCP will be assisting with interior design and interior architecture.
Young professionals moving to London are also looking for small renovation projects, often with the help of the Bank of Mum and Dad.
LCP have been designing and furnishing properties for decades. We are now delighted to announce the launch of our Furniture Package service for owners looking for a turnkey solution. Our interior design team have created three distinctive looks that can be adapted to suit a large townhouse, apartment or buy-to-let property. From initial design proposals and project management to delivery and installation, neither luxury nor style is compromised.
Looking for advice and implementation? Book a complimentary consultation with a member of our design team here.
We recently released our Q1 2023 lettings report highlighting a strong first quarter of the year. To read the full report, please download it here.
Young professionals from the finance sector represented the highest proportion of new tenants in our portfolio at nearly 40%. This is unsurprising with the increased competition and rising rents in PCL. Rents on re-lets still stand at a historically high level following their suppression during Covid, with increases of 16.5%, together with 8.4% for renewals over the previous quarter. We saw a 30% uplift in average rent per sq ft since 2020 at £59 per sq ft. This is the highest level reached over the last 10 years, mainly due to lower supply and high demand.
In an active market with heightened regulation, it is crucial to ensure that your property is legally up to standard. LCP is now offering a new 54-point ‘Fit for Rent’ check, covering all aspects of Private Rented Sector (PRS) property management compliance. Click here to find out more and book one.
If you are struggling to let your rental investment, get in touch. We would be delighted to talk to you.
We are delighted to announce that LCP has been named one of PCL’s Top Recommended London Property Advisors in the 2023 Spear’s Index. Spear’s Magazine includes an annual listing of the best buyers, sellers, managers and investment advisers working with property and high-net-worth individuals.
We recently launched our blog on our new website. Check out our new blog here where we will cover hot topics every buyer, landlord and investor in PCL will want to know more about.
Around the world…
After a busy trip in the Autumn, Liam Monaghan, Managing Director and Miles Atkinson, Head of Search and Acquisition, returned to the Channel Islands to meet with clients, trusts, and fiduciaries, updating them on investment trends and opportunities in the property market.
We are currently planning trips to Singapore, Kuala Lumpur, Bangkok and Hong Kong in June, to catch up with clients, partners, family offices and corporate connections.
LCP is more than just a buying agent. We help clients acquire, renovate, design, let or manage their property in Prime Central London. Whatever your ask, we are here to help.