Property market in London NW11 – March 2022

MARKET ACTIVITY

The local property market in Golders Green and Hampstead Garden Suburb in London NW11 has experienced an activity slow down over autumn and winter 2021 after the end of the stamp duty tax discount in September 2021. Sale transactions have reduced dramatically over that same period as many sellers and buyers decided to focus on spending Christmas with their families as it wasn’t allowed in 2020. The emergence of Omicron at that time also played a role. Buyer demand returned in mid-January 2022 but faced a lack of available supply, in particular houses. This is still the case today with the effect of shortening average selling times.

Interest rates have progressively increased from 0.10% in September to 0.75% in March 2022, affecting buyers’ buying power. This may compensate the effect of low stock supply for certain types of properties. Overall average selling prices in NW11 have increased by 10% annually. Semi-detached and Detached properties are currently very much in demand. We note a small progressive supply increase these past 2 months and it is hoped that Springtime will bring more new listings to the market.

The rental market has also seen its supply dry up since October 2021, especially for houses. Many tenants prefer to extend their current tenancy and not move, further limiting supply. High inflation and energy prices are affecting tenants’ financial ability to move. Many larger families struggle and we have seen asking rents for houses decreasing over the past months. Low stock levels and high demand have resulted in a record increase in average asking rents for flats, while houses’ average rents are now lower. Landlords hopefully remember the importance of having good long term tenants and that there is only so much tenants can afford. Londoners in general are now spending 42% of their monthly income on rent. Rents are due to continue to rise in 2022 but the growth will be limited by high inflation and energy costs.