Apartments are proving particularly popular with one recently attracting 30 viewings and eight sealed bids and the lettings market is also buoyant with new developments letting quickly, but there is a shortage of supply for family housing and rent increases are likely.
‘We have agreed some very encouraging sales in January and sentiment remains strong, particularly for investment properties priced under £2 million. Soon after launching an unmodernised one bedroom flat priced at £625,000, we had 30 viewings and the property attracted eight sealed bids,’ said Richard Barber, partner at W. A. Ellis.
‘It's also interesting to note that we're seeing a variety of potential buyers, including investors, owner occupiers and, buy to let purchasers. Competition is strong with a mixture of cash buyers and those requiring finance,’ he added.
He pointed out that the volume of transactions in the prime SW postcodes shows a consistent house sales market within the core market of £1.5 million to £7 million and the demand for flats can only be a good sign for the development stock coming on to the market this year. He believes that transaction levels are likely to increase further.
‘We have recently been instructed on two extremely well located houses. Firstly, an unusual coach house in the heart of Chelsea which is arranged on only two floors but planning consent could be applied for to create an extension on the second floor and a basement, providing a further 1,150 square feet of accommodation,’ explained Barber.
‘Secondly an unusually wide house in Yeomans Row arranged on three floors and enjoying views over Egerton Place gardens. The house has been immaculately refurbished by its current owners and also offers scope for further extension into the basement if required. We are certain that two such high quality houses will sell quickly,’ he added.
Colleague Lucy Morton, senior partner and head of lettings, said that January has been one of the busiest for many years and the trend is set to continue well into spring and summer. ‘The lettings market has been especially buoyant, and we have launched two new developments in Knightsbridge,’ she explained.
‘We recently advised a client to refurbish a two bedroom flat which we have been letting successfully for 18 years, and we secured a tenant within 24 hours of marketing on completion of the works and achieving a 15% increase in rent,’ she added.
She pointed out that there is currently a shortage of supply in the family house market. ‘We are encouraging investors to purchase family houses to satisfy the current demand. Due to the shortage, we are anticipating that rents will increase in this area of the market,’ she said.
