London Property News – August 2021

While many of us still enjoy a well-deserved holiday during August, let’s have a look at the London property market around Hampstead Heath in North and North West London, our favourite neighbourhoods. A must-read property market report if you live in Hampstead, Belsize Park, Highgate, East Finchley, Finchley, Hampstead Garden Suburb and West Hampstead.

According to the latest ONS House Price Index, London has seen a 6.3% increase in average selling prices over the year to June 2021, up from 5.2% in May 2021. London remains the most expensive region with an average selling price of £510,000 in June 2021, compared to £498,000 in May 2021. But this increase doesn’t apply equally to all boroughs or all types of properties. Larger properties with additional work space or outdoor space are still the most demanded.

May 2021 average selling prices

Please note some negative year-on-year changes are explained by the lack of sales in June 2021 of detached and semi-detached houses or expensive properties. It doesn’t mean that property prices have dropped by such percentages! These percentages compare the average selling prices between the June 2021 transactions and the June 2020 transactions.

WILL THE NEXT STAMP DUTY TAX CHANGES HAVE ANY IMPACT ON THE MARKET?

From 1 July 2021 to 30 September 2021, the threshold for starting to pay Stamp Duty Tax is lowered by half to £250,000. This only applies to first-time buyers. Buy-to-let and non-first-time buyers pay an extra 3%. Non-UK residents pay an additional 2%.
From 1 October 2021, the threshold reverts to £125,000 and the extra 3% still applies to landlords and second home buyers. Non-UK residents also pay an additional 2%. You can read more about SDLT changes here.
If you have any doubts, please use our Stamp Duty Tax calculator

Research by Rightmove has found that only 4% of buyers in England would abandon their plans to buy a property if they missed the June or September stamp duty deadline. One in four (25%) said they would try to renegotiate the price with the seller while 13% said they would plan to buy a cheaper home. “Activity is still strong despite this first phase of the stamp duty holiday coming to an end in England, as before the extension being announced there was already a huge group of buyers deciding to move regardless of the stamp duty holiday,” said Rightmove’s Tim Bannister.

JULY 2021 AVERAGE RENTS

After a semester of stagnation, London rents started to increase again slowly in July, by 2.1% more than a year ago according to Homelet Rental Index Report.

Sources: Office National of Statistics, Homelet, Home.co.uk, The Week

Do you need to sell or let your home in these fabulous north London neighbourhoods?