Where the London property market is headed in 2022

Director Marc von Grundherr speaks to Vanessa Warwick from Property Tribes about the resilience of the London property market and gives his predictions for where the sector is headed in 2022.

London has seen 5.5% annual growth and even though it continues to trail the wider UK (10.8%), we are now seeing a reversal of this trend. Camden saw the largest increase at 16.2% followed by Hammersmith and Fulham (15.5%), Islington (15.3%) and Westminster (15.1%) also pointing to a revival in Prime Central London.

With regards to the impact of the Covid-19 pandemic, London saw growth of 9.5% over this period with Brent seeing the largest pandemic increase at 20.9%. Richmond (17.1%), Merton (16.2%), Bexley (15.9%), Harrow (15.7%) and Islington (14.8%) were also amongst the largest increases which speaks to the demand for larger homes in areas with plenty of green space.

Interestingly, since Brexit average London house price are up 11.3% with Redbridge seeing the largest increase at 23.6% followed by Barking and Dagenham (23.2%), Bexley (21.7%), Islington (20.8%) and Waltham Forest (19.5%).

London flats prices have stuttered in the last year up, by just 4.3% due to the lack of demand from professional tenants. Although demand for flats is up by 15.5% in Camden, 15.3% in Hammersmith & Fulham, 14.9% in Islington and 14.8% in Westminster.

As professionals return to the office, it’s important that landlords and investors are aware of the key trends influencing the market particularly proximity to transport links with the launch of Crossrail this year and large-scale regeneration areas that offer tremendous growth potential.

Most importantly, London property has always been a bullet-proof investment – a safe haven that investors flock to in times of crises and never more so than now.

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