While there has been a lot of media attention on homeowners leaving London, to the outskirts of the capital, and further beyond, it appears as though there is a group of buyers who are loving what the heart of London has to offer.
A new study indicates that for the first-time in five years, there is a larger number of young buyers purchasing property in the centre of London than they are on the outskirts.
At Hunters Forest Hill, this is something we are greatly interested in. We serve communities in Forest Hill, Brockley, Dulwich, New Cross and Peckham, amongst others. All these areas appeal to young buyers, and we are sure there are many reasons why first-time buyers or first-time movers want to see what the area has to offer.
If you are interested in finding out more about these regions, please get in touch, and we will be more than happy to assist you.
First-time buyers heading to Zones 2 and 3
The study carried out by Hamptons International indicates that homes sold to first-time buyers in Inner London rose from 28% of all sales before lockdown to 35% of all sales after lockdown. At the same time, the proportion of properties sold to first-time buyers in Outer London, Zones 4, 5 and 5, dropped by 5%, from 26% to 31%.
David Fell is an analyst at Hamptons, and he said; “There has undoubtedly been a shift in buyer preferences over the last five months towards having space both inside and out. But this shift has been less pronounced among first-time buyers. They put their location and surrounding activities over household space. So, while some second and third steppers have increasingly chosen outer London over inner, first-time buyers have not been swayed in the same way.”
There is no denying the stamp duty holiday helps people afford property in London, the benefits are mainly attributed to existing homeowners. However, first-time buyers might find the savings are of benefit to them too. Any chance to lower the overall cost of moving home is worth considering.
As of December 2020, Rightmove states; “Properties in Forest Hill had an overall average price of £510,788 over the last year. The majority of sales in Forest Hill during the last year were flats, selling for an average price of £366,320. Terraced properties sold for an average of £634,402, with semi-detached properties fetching £786,333. Overall, sold prices in Forest Hill over the last year were 1% down on the previous year and 6% down on the 2017 peak of £545,838.”
For Peckham, Rightmove says; “Properties in Peckham had an overall average price of £562,766 over the last year. The majority of sales in Peckham during the last year were flats, selling for an average price of £415,770. Terraced properties sold for an average of £810,400, with semi-detached properties fetching £882,261. Overall, sold prices in Peckham over the last year were 1% up on the previous year and 6% up on the 2017 peak of £530,156.”
Rightmove also looked at the house market in Dulwich, saying; “Properties in Dulwich had an overall average price of £804,111 over the last year. The majority of sales in Dulwich during the last year were flats, selling for an average price of £451,094. Terraced properties sold for an average of £916,402, with semi-detached properties fetching £1,404,654. Overall, sold prices in Dulwich over the last year were 7% up on the previous year and 15% up on the 2016 peak of £698,198.”
Rightmove have discussed the New Cross housing market as follows; “Properties in New Cross had an overall average price of £488,070 over the last year. The majority of sales in New Cross during the last year were flats, selling for an average price of £396,178. Terraced properties sold for an average of £710,466, with semi-detached properties fetching £814,785. Overall, sold prices in New Cross over the last year were 5% up on the previous year and 3% up on the 2017 peak of £473,688.”
According to Rightmove, the Brockley housing market is shaping up as follows: “Properties in Brockley had an overall average price of £573,197 over the last year. The majority of sales in Brockley during the last year were flats, selling for an average price of £420,706. Terraced properties sold for an average of £737,812, with semi-detached properties fetching £715,020. Overall, sold prices in Brockley over the last year were 5% up on the previous year and 5% up on the 2017 peak of £547,421.”
With the stamp duty holiday in place, buyers can save up to £15,000; so, it is easy to see why so many people are looking to move sooner rather than later, but no matter when you move, we can help.
Katie Clutterbrook, a known-name in the property market in London, said; “If they can get their deposit together, low interest rates make a mortgage very often cheaper than renting. This, coupled with the stamp duty holiday and Help to Buy, means that this summer we were far busier with genuine enquiries from first-time buyers than we have been in previous summers.”
JLL’s head of residential research Nick Whitten said; “The uptake of Help to Buy in London since the lockdown is booming. First-time buyers are aware that it will be phased out in a few years and that the stamp duty holiday ends in March. They think there is a small window in which to buy.”
The Inner London boroughs are classed as:
- Camden
- Greenwich
- Hackney
- Hammersmith and Fulham
- Islington
- Royal Borough of Kensington and Chelsea
- Lambeth
- Lewisham
- Southwark
- Tower Hamlets
- Wandsworth
- Westminster
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.
