Housing market activity dropped in the run up to the UK general election, but early signs are that we’re seeing a post-election boost.
In June and July offers on new builds in London fell by around 50% compared to a year earlier.
However last week viewings were 11% higher than the year before.
Anna Ward, associate at Knight Frank research, said: “Overall, sentiment has improved with the Bank of England cutting the base rate for the first time in over four years last month to 5% from 5.25%. Financial markets are pricing in a further 0.25% cut in November.
“Domestic demand for new homes picked up in the first half of 2024 and has been supported by an uptick in international buyers.”
Currently, buyers are focused on well-located central schemes in London, as current top-selling schemes include One and 10 Park Drive in Canary Wharf, which have just 56 one or two bed apartments remaining out of a combined 830 private units.
In the first half of 2024, off plan sales accounted for a third of all new homes sold with Knight Frank in London, up from a quarter in H1 2023.
Supply is a big issue in the capital.
Out of all regions in the UK, London saw the steepest drop (35%) in new homes granted approval last year versus 2022.
The new government has asked London Mayor Sadiq Khan to more than double the number of new homes being built in the capital each year. He has been set a new target of around 80,000 homes, which compares to just 35,000 built in the 12 months to March 2023.
