The race for space during the pandemic led to a mass exodus of Londoners, but
for many this was only temporary.
Now they’re back and looking to buy, and developers and estate agents are reporting a surge of interest, and not just for houses.
Far from flatlining, demand for flats in the capital is on the up. ‘Undoubtedly we are starting to see the effects of Plan B lifting on home-buying behaviour,’ says Linda Faucher, sales and marketing director at NU Living.
With the ‘Great London Return’ underway and many people needing to commute to spend part or all of the week back in the office, we have noticed a significant increase in demand for homes with closer proximity to the city.
At our Blackwall Reach development in East London we’ve seen a 576% increase in the levels of enquiries versus the same period last year.
This rise is staggering and can be heavily credited to the desire of buyers to step onto the property ladder in a location and at a development which enables a more flexible working lifestyle.’
Winkworth’s 60 London offices are also very busy. ‘Last month, overall sales applicants were 43% ahead of January 2021 in London, with flat applicants up 36%,’ says chief executive Dominic Agace.
‘What we are seeing is that due to a shortage of supply, flats that may have struggled to sell last year are now being purchased at near asking price, driven by the supply/demand imbalance.’
According to the latest government figures, the average London flat is now just shy of £440,000, compared with over £563,000 for a terrace house and nearly £662,000 for a semi – though there are obviously wild variations depending on location.
‘Thanks to adverse publicity surrounding cladding, ground rents and lease renewal costs as well as Covid leading to buyers wanting outside space, flats failed to increase in value as quickly as other property,’ explains Jonathan Rolande, founder of House Buy Fast.
‘Flats now look (comparatively) better value than before and demand is rising. And first-time buyers may be daunted by taking on a new home that also needs outside work, and gardening which may not fit today’s busy lifestyle. Flats have all this taken care of.’
‘Being cheaper, flats can offer a lifestyle in a more central location which houses can’t and are often closer to people’s place of work, transport links and amenities,’ explains Jenny Anson, head of sales at Pocket, which recently surveyed London’s younger generation of homeowners and renters on their attitudes to homeownership in the capital.
‘Our research found that more than a third of respondents now consider “community” as particularly important when buying a home, with 27% also agreeing that amenity spaces are a priority.
‘Apartment blocks increasingly offer a range of amenities which homeowners wouldn’t realistically be able to have if they purchased their own house, such as big roof terraces, wellness rooms and residents’ lounges.’
Some new developments offer a range of facilities akin to those found in luxury hotels.
‘These include spas, cinema rooms, gyms, bars and residents lounges, meaning that even if you own or rent a studio or one-bedroom flat, you have the benefit of all of these additional spaces,’ says Joseph Bate of JOHNS&CO.
‘Suddenly, your one-bedroom home is providing you with a cinema room you can book out on weekends, a bar you can host your friends in and a meeting room where you can work remotely.
‘Communal spaces provide an opportunity for residents to get to know one another. In developments like Royal Wharf, residents have started their own clubs and regularly get together to socialise. Running costs tend to be lower, too, and most blocks have a concierge or security of some kind which adds further peace of mind as well as convenience for deliveries.’
Another huge draw for time first-time buyers is that Help to Buy is offered on a wide range of new-build flats costing up to £600,000 – a price point too low for all but a handful of new houses in London.
Or, if the numbers crunch, a shared ownership home might be a better option – and the bulk of these are flats.
Harbard Close, Barking
Like all Pocket Lving’s developments, homes at Harbard Close in Barking are
targeted at first-time buyers and priced at 20% below local market value.
Communal areas encourage residents to socialise, and allotment beds in the garden have been a huge success.
From £192,000 via Pocket Living.
Chiswick Green, Great Marlborough Estates,
Newly-launched Chiswick Green, by Great Marlborough Estates, gives buyers the chance to live in a sought-after urban village surrounded by green space.
Tucked behind bustling Chiswick High Road and overlooking Turnham Green, most of the one, two and three-bed apartments have balconies with river, park and city views, and there are generously-sized communal terraces.
From £580,000 via Chiswick Green.
Trinity Walk, Woolwich
Lovell’s Trinity Walk in Woolwich is a pet-friendly development that prides itself on a strong sense of community.
Many residents have bonded over walking their pooches, and all homes are offered with Help to Buy.
‘Buyers here find their mortgage repayment will often be lower than the previous rent costs. That’s a big driver,’ says Roseanne Bullen, Lovell’s London region sales and marketing director.
The one, two and three-bed apartments include balconies and overlook communal gardens.
From £355,000 via Trinity Walk.
Randalls, Uxbridge
Opting for a new-build doesn’t mean compromising on character as across the capital, unique historic buildings are being repurposed as flats.
Among them is Randalls, an art deco style former department store in Uxbridge, where features such as money chutes, cash desks and shutters have been retained.
One and two-bed start from £320,000 with Help to Buy on some plots, via Inland Homes.
Poplar Riverside
You don’t have to spend a fortune to get all the bells and whistles, as demonstrated by St William’s Poplar Riverside on the banks of the River Lea.
All the studio, one, two and three-bed flats come with private outside space and amenities include a state-of-the-art Home Club with a swimming pool, spa, business lounge, private dining rooms, cinema and games room and a 24-hour concierge service.
From £402,000 via Berkeley Group.
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