The London Barometer May 2015
Friday, May 22, 2015 by George Franks and Virginia Skilbeck
May 2015 / Sales
“Contrary to the crippling effect of election uncertainty, offers received in April were up 15% on last year indicating a strong appetite amongst vendors and applicants to do business. After a fiercely contested and unpredictable campaign
period, figures show that the market lost patience waiting for a political outcome. Given the events of May 7th hopefully buyers and sellers now feel buoyed up even if only because of the uncertainty that’s been stalking them.
“As forecast in previous editions of the Barometer, the election didn’t have as great an impact on transactions as anticipated and largely affected uncommitted buyers looking for excuses not to buy. That said, three times more flats went under offer than houses, demonstrating that it has been business as usual at the sub-million price point. Given the absence now of Mansion Tax concerns we feel this will further fuel the appetite for houses.
“Collectively, we have c. 120 properties that are being released now the outcome of the General Election has been confirmed. Feeding pent-up demand, such volumes indicate a bounce in transactions and a busy summer ahead.”
George Franks, Sales Director
May 2015 / Lettings
“Despite a sense of hesitation in the lettings and sales markets in April in the run up to the Election, the number of new tenancies agreed was similar to the same month last year, with new tenant registrations more than 25% up on same period.
“While the emerging prime stalwarts of Battersea, Clapham and Putney saw increased tenant demand eclipsing supply, in PCL demand slumped, demonstrating the fragility of business confidence. Many companies have delayed transferring employees to London amidst fears that the economy could go into reverse depending on the Election result.
“The new Conservative government brings a wave of relief to landlords, sparking renewed confidence to invest in additional rental properties, while existing tenants will have the confidence to consider home ownership. The resulting increase in supply will cater to the seasonal migration of students and professionals into London, creating an overall uplift.”
Virginia Skilbeck, Lettings Director