One bedroom apartments in London see prices rising more than bigger flats
Property sales prices increased by an average of 4% across some key areas in London this year but there has been a slowdown overall, new research shows.
Midtown, City and Docklands saw the price of one bedroom apartments rising by 7% compared with just 2% for two bedroom apartments, according to the bi-annual research from property advisors and development consultants Hurford Salvi Carr.
The research also shows that the rental market picked up and recovered in the second half of 2014 with higher numbers of tenants registering and taking out new leases across Midtown, City and Docklands.
Rent levels ended the year down 1% or largely unchanged over the year and the report explains that the upturn in the second half of the year coincides with a downturn in enquiries in the sales market across central London.
It also shows that the average yield on a typical one bedroom apartment has now fallen to 4% with the yield of new homes averaging between 3% and 3.5%.
Looking to 2015, the research indicates that there will be fewer properties being offered for sale in the first six months of next year. It is anticipated that confidence will remain weak in the sales market building up to the general election in May and prices of existing homes will remain unchanged, as owners across Midtown, City and Docklands are not highly geared or in the majority of cases have no borrowings and will not consider selling below full value.
It is expected that the price of new homes up to £1 million will continue to sell at current levels and the price of new homes over £1 million may see asking prices fall by between 5% and 10% as the supply of new homes above £1 million is expected to increase in 2015.
The research also indicates that residential rents will firm up in 2015 and will increase by 5%. If this happens, it will be the first time rents will have risen since 2010.
Hurford Salvi Carr this week opened their new office on City Road, N1, expanding their network of offices to 5 across the City, City Fringes, Midtown and Docklands.