fbpx
London Buyers Prepared to Spend 20% More

London Buyers Prepared to Spend 20% More

20.05.20

The coronavirus pandemic may have stalled real estate transactions across London, but buyers haven’t disappeared; they’re just waiting in the wings, according to a report Monday from Knight Frank.

As of May 5, the combined budget of all potential buyers registered with Knight Frank in London was £52 billion (US$64.2 billion), a 20% increase from the £43.5 billion registered buyers were collectively prepared to spend on the same day in 2019, the estate agency and property consultant said. 

At the same time, transaction numbers in the city in the week ending May 2 were 54% below their five-year average.

The U.K.’s coronavirus lockdown, which has shuttered businesses and schools and halted much of the real estate market, went into effect on March 23.

Across the country 223,060 people have tested positive for coronavirus and 32,065 have died as of May 11, according to the country’s Department of Health and Social Care.

Not only are London buyers currently proving hesitant to make moves, but sellers are, too.

The number of new properties placed on the market in the week ending May 2 was down 74%, and in each of the four weeks leading up to May 2, supply fell by more than demand, “a trend that will act as a brake on price declines,” according to the report.

“That said, the difference between asking prices and exchange prices is widening,” Tom Bill, head of London residential research at Knight Frank, said in the report. “In April 2020, the average sale price was 94% of the original asking price, down from 97% in January, which was a time when the effects of the so-called Boris Bounce started to take hold.”

“This reflects the ad-hoc renegotiations that are taking place between buyers and sellers, which are not based on comparable evidence,” Mr. Bill added.

The U.K.’s property market had been enjoying a prosperous start to the year following Boris Johnson’s re-election in December, and property prices nationwide increased 3.7% annually in April, according to a report from Nationwide.

Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • The Hideaways Club
  • Monaco Real Estates
  • RDO
  • Rosemont Consulting
  • St Francis Links
  • Unique Home Stays
  • Yoo
  • Worldwide Dream Villas
  • Cyan International Properties
  • Enigma Yachts Limited
  • Cornerstone Tax Advisors
  • Lida Cucina
  • Pedini London
  • Alexander James
  • Wings
  • Moore Stephen
  • Ibiza Transit Express
  • Oyster Yachts
  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Smart Currency Exchange
  • Prestige Architects
  • Worldwide Property
  • Panorama
  • Dimora
  • Dominic McKenzie Architects
  • The Coastal House
  • Chamonix Ski Chalet
  • Luxe Caribbean Properties
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • London Fractions
  • Page Architects
  • Millgate
  • Jersey Finance
  • guernsey-relocations-logo
  • viberts-logo
  • b-williams-management
  • kpmg-logo
  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Experience Invest
  • Move 2 Gozo
  • Deborah Garth
  • Extex
  • You home
  • Ra Shaw Designs
  • Caudwell Collection
  • eastwood private client
  • accanto-interiors
  • Fritz Hansen
  • capital-rise
  • jarrods-staircase
  • neil-davies-logo
  • Tina Shone Group
  • Taplow riverside
  • Aimo
  • ns-ceramics-logo
  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
  • Douglas Graneto
  • Strutt & Parker
  • wilsons
  • MJC Associates
  • plainspace
  • Fine & Country
  • Bramble Ski
  • Page Architects
  • Penthouse queen
  • Sarco_Affiliate_Logo
  • taylor wimpey
  • cooper-gardner
  • M Design Architects
  • codan
  • Lovells
  • London DE
  • HELENA JORNET FINQUES
  • Prime Lands Group
  • Bellegarde Estates
  • Sinclair
  • Pippa Paton
  • Ecole d'Humanite
  • Miller
  • Benedek Lewin
  • Inspired Villages
  • Huelin Homes
  • Gaudin
  • Lovells Property
  • Racecourse Lodge Logo
  • Paseo
  • Moores Rowland
  • Lemay + Escobar
  • Octagon
  • Locate Isle of Man
  • Newlands of Stow
  • Hawksford
  • Holdun
  • St George's International School
  • Schule Schloss Salem
  • AR Architecture
  • lazaro
  • Sella Concept

Enter your dream destination