A friend of mine once described nighttime in the central London square he called home as the quietest place in the country. The huge number of properties owned by absent overseas investors really did mean that all the lights were out and no one was at home. I wondered whether this still held true, but reading the thoughts of our expert panel, it sounds like – despite the seismic changes we have all been through – perhaps the central London prime property market has seen less change than most.
There is a consistent thread running through the views of all our contributors: hold firm on price, look to the long term and remember how the London market has always offered a safe haven. In these uncertain times, let us hope it continues to do so.
Islay Robinson, CEO at Enness Global Mortgages:
Every time the clouds pass, international money floods into the London property market. The brief period between the Brexit withdrawal agreement and the start of the Covid pandemic clearly proved that, and there are still clear signs of pent-up demand.
The market has faced a long list of challenges over the last decade: Brexit, Covid, austerity, stamp duty, tax changes for enveloped properties, IHT and more. However, the view is still widely held that you should never bet against the London property market. It remains central to the financial and cultural worlds, is politically and legally safe, and remains at the top of many investment lists.
The key is to buy well, finance correctly and hold for the long term. Right now, starter homes and one- to two-bedroom properties with gardens are in high demand given the stamp duty holiday. New-build apartments are only good value if you can negotiate a significant discount. Four-bedroom-plus houses with gardens are like gold dust in the £2m to £10m range, but only in the right areas. And don't touch anything over £10m unless it has outside space.
From a finance perspective, interest rates are very low and mortgage availability remains high if you can demonstrate either income or wealth. There are still very strong reasons to borrow money to acquire property.
