What does this mean for the London property market in 2020?
Supply vs Demand
Whilst property prices are forecast to continue falling, many housebuilders are reducing their activity. This will protect the market from a crash as demand for housing will continue to be higher than supply.
London’s Rental Market
Affordability and price-sensitivity are two key issues for the London rental market. London has seen a significant increase in tenant demand however the level of achievable rental income is forecast to remain stable as tenants simply can't afford to pay extra to secure a property or move to a more desirable location. Rental yields are therefore predicted to stay consistent with 2019’s levels.
As sustainable living and protecting our environment become increasingly important, buyers' requirements are changing. The younger generation of buyers and tenants have clear priorities as these trends are influencing the rest of the property market. Top requirements now include:
- EPC ratings
- Bike storage
- Locations close to parks and green spaces
- A wider walk ‘limit’ to tube stations, increasing from 10 to 15 minutes
- A good sense of local community
- Outdoor space – with an opportunity for growing vegetables as well as relaxing
“The London property market has been nervously awaiting the outcome of Brexit for most of 2019,” says Jason Dyer of JTM Homes. “One way or another, this will be resolved in 2020 and we anticipate a surge of activity once we have some clarity regarding our political and financial position.”
Are you thinking of buying, selling, letting or renting in north London? Contact our team for an informal chat. We’ll put the kettle on!