Buyer registrations and tenancy agreements in Prime London have soared in the last year, according to Marsh & Parsons’ latest London Property Monitor.
The number of new buyers registering for Prime London property in January 2016 has increased by 24% than in the same month in 2015.
Outer Prime London areas are experiencing the highest New Year demand from interested buyers, with Barnes and Bishops Parks seeing amongst the largest rises in the number of those registering to buy.
However, supply is failing to meet this increasing demand. In Prime London, the supply of homes fell 12% year-on-year in the last three months of 2015.
Competition is therefore fiercer than ever in the capital, with 13 buyers on average fighting over one Prime London property.
Peter Rollings, CEO of Marsh & Parsons, commented on the influx of new buyers: “The figures we’re currently seeing are strong even by those standards. Private buyers, landlords and other investors are rushing to secure their preferred property before the 1st April Stamp Duty hike.”
The lettings market remains buoyant too. The number of tenancies agreed in the first two weeks of 2016 was up 44% compared to the same period in 2015.
Prime Central London in particular enjoyed solid lettings growth, as agreed tenancies surged by 91%.
Outer Prime London witnessed a steadier expansion in tenancy agreements – 23% in January 2016 on a year-on-year basis.
One bedroom properties are the main drivers in growth in lettings activity and property demand, with average prices increasing by 3.1% between Q4 2014 and Q4 2015.
Rollings added: “The rise in the value of one-bed lets and purchase properties indicates supply in the Prime London housing market remains an issue, as developers are still not being sufficiently incentivised to build the homes the capital requires.”