The last year was unprecedented in the UK property market.
When the usual seasonal cycle was disrupted by a major shock, more people decided to move. Particularly high demand in the country has been well documented. A rush was on, and lots of properties changed hands.
Those looking to new pastures now are faced with the dual disappointment of a lack of available stock or stiff competition. Many people may feel they missed out on something, like a chance to catch a wave that has now passed them by.
If that was the ‘first wave,’ then the smart investors are now taking a strategic approach to prepare for what’s coming next.
The best of both worlds
Properties with gardens and terraces have always been in high demand, and such attractive qualities became more desirable during the extended lockdowns. Inevitably average prices went up, and all the good or reasonably good stock is gone.
Yet despite it looking like a sellers’ market, new stock is slow to come up for sale because of continued uncertainty among owners. Furthermore, except for a few notable transactions, prime central London flats may have been overlooked.
Indeed, prime central London is not completely dead. As has been said before, workers are heading back to their offices, and city-centre retail and hospitality venues have re-opened. There is a sense of re-awakening, renewed energy here, and—dare we say it—excitement. (London is after all one of the world’s greatest cities.)
Therefore, some clients have refocused their search.
Shift your point of view
For many, the acquisition of country property was a life-stage decision. It was time to finally decamp from the city for a full-scale relocation. The current conditions offer a variation on the theme, which is particularly attractive to international clients: a pied-à-terre in London complemented by a country pad, which allows for the best of both worlds.
What you do next depends on your perspective. A shift in mindset, though, helps you see things clearly, avoid the hype, and act wisely.
Take a high-level view of your UK property plans and work out how you can have green space, light of the country and the access and amenities of the city. You don’t have to choose or compartmentalize. It is not a binary either/or choice.
In the city, evaluate the market carefully to understand the cadence and rhythm. Not all neighbourhoods had the same dynamic (e.g., Notting Hill houses can go for exuberant premiums while prime central London flats remain more subdued).
In the country, patience should pay off. With pressure to buy tomorrow, use your time wisely. Make some visits to get to know your preferred areas. Sharpen your pencil and clearly define your lifestyle and what criteria are most important. And, as always, collaborate with an impartial adviser and get your financing arrangements in order.
Then you will be ready to act.
This is the kind of portfolio approach that smart clients take for their assets and investment options. They recognize the cyclical nature of the market. And they understand that lifestyle is about balance: a healthy outlook is to envisage your strategy as one of managing trade-offs, rather than making sacrifices.
To subscribe to updates from Longview, fill in the form below:
