Given everything that has taken place in the past year, it shouldn’t be a surprise to learn that buyer demand has changed in and around London.
There has been a lot of talk of people selling up and moving out of London. If people can work remotely, there is a greater sense of freedom, and there will be many households looking to lead a more rural existence.
There is no denying that open space and a sense of freedom is important to many people.
However, simply saying people are leaving London is not telling the full story.
There is still significant demand for homes in the heart of London. Also, while there are people and families selling up in Inner London, many of these people are moving to Outer London.
Therefore, a lot of the “London leavers” are actually remaining in London, just further out from where they previously lived in the capital.
In September 2020, Rightmove considered the demand for property by Travelcard Zones, and ranked it to the previous year.
Between September 2018 and 2019, there was an 8% increase in demand for homes in Zone 5, but between September 2019 and 2020, the increase in demand was 103%. 2020 was a unique year, but the change in buyer demand to the outer reaches of the commuter line indicates many households were looking to move further afield.
There was an even greater switch for property in Travelcard Zone 6. In Zone 4, the increase wasn’t as prominent as 5 and 6, but for the year between 2019 and 2020, there was a growth of demand by 76%.
Rightmove’s Head of Property Data Tim Bannister comments: ”Agents have been reporting a number of people selling up in the inner London zones and moving further out, but to see this reversal in the demand trend reflected so clearly in the data is quite something. Some buyers still expecting to commute into the centre in the long term may have now adjusted their mindset about how many zones they’re prepared to move out, leading to zone 6 being the new favourite. This data demonstrates the short-term trend of more central places like Moorgate and Bank seeing lower demand right now – although it’s worth noting that it’s off strong demand levels for these locations a year ago. I do think this demand will come back eventually but it’s not clear yet how long it will take.”
We know these are challenging times for the property and rental market. At Love Your Home, we are keen to maintain a high standard of service for all our clients. As well as helping people now, we will review the changes likely to occur in the market. If you are looking to stay informed, rely on Love Your Home.