The one-bedroom apartment – most demanded housing in London

The number of new potential buyers and tenants of residential property in London is increasing since the beginning of January 2016, with a particularly significant interest of both buyers and sellers for one-bedroom apartments.

The number of new registered buyers in January 2016 was 24% higher than in January 2015, according to a report published by estate Agency Marsh & Parson.

However, this burst of activity came across the shortage of supplies – 12% less gentrification was set in 2015 and every object of luxury housing at the end of 2015, there have been 13 potential buyers of property in London

Excessive activity in the real estate market this year due to the introduction of increased rates of Stamp duty for investors from 1 April 2016, which seek to close the deal before that date to avoid paying extra taxes.

In January, felt the surge and in the rental market of elite real estate of London. It was concluded for 91% of agreements of lease in January than in the same period last year. The surge came after the cooling of the market last year, when owing to the decrease of activity on the part of employees of the financial sector in 2015, rents rose only 0.6%. Outside of Central London also a good activity in the market of rental housing. It was signed by 24% more leases than a year earlier.

Luxury one bedroom apartments are the most popular among buyers.

The cost for such apartments increased from Q4 2014 to Q4 2015 is 3.1% , which is equivalent to £18417 pounds. At the same time, the cost of luxury apartments in London of all types increased by 1.6%.

Rent growth is even more marked – the rent for apartments with one bedroom in Central London increased by 6% yoy, from 392 to 415 a week. At the same time, the rent on any luxury housing increased by 1.7%.

The report noted that builders in the UK should think about the supply on the real estate market of apartments with one bedroom, a deficit which is growing. Another trend noted in the report – increasing the number of buyers who bought their housing with attraction of mortgage capital the share of such buyers has increased from 49% to 66%. Respectively, decreased the proportion of buyers who buy property for their own means – the number of customers has decreased over the year from 51% to 34%.

® Maxim Savitsky. G. 01.02.2016

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