London Housing Market Recovery Well Underway According to Nick Millican

In the article “From boomerang buyers to zone changers, London’s property market is finally on the move once more,” analyst Nick Millican provides insight into the forces driving the revival of London’s property market. He observes that after years of sluggishness, the capital is experiencing a notable post-pandemic rebound as pent-up demand is unleashed. Transaction volumes in January and February topped 35% compared to the year before.

Pent-up demand accumulated during the mortgage chaos of the past year appears to be released as mortgage rates stabilize. Buyer confidence has also risen on expectations that interest will decrease further this summer, Nick Millican recalls.

According to Nick Millican, this dynamic resembles the spike seen after December’s general election, before Covid put things on hold. Higher borrowing costs pushed some sales into 2024, but people are now accustomed to prevailing rates. Younger buyers and those seeking more space continue unlocking long-deferred moves, observes Millican.

Properties under £300,000 and family homes from £500,000 to £1 million see outsized demand. Areas around transit links and the urban lifestyle are thriving anew as remote work recedes, contends the real estate agent. Nick Millican adds that data from various agents show strong search activity for in-demand zones like Teddington, St John’s Wood and Clapham.

Foreign cash also drives central transactions as the dollar remains mighty. Nick Millican believes London is beginning to make up for lost time after nearly a decade of torpor, with transaction levels up across all budgets and property types. Still, he notes that the affordability strains persist, and the shortage of supply cushions rising prices. For now, Nick Millican finally states, boomerang buyers and zone-changers give the market momentum. Whether this recovery proves lasting remains to be seen.