South East London has become a hive of activity and although there are slightly fewer buyers in the market compared to the same time last year, the quality of buyer is better and we’re actually seeing more offers being placed as a result of viewings. The success rate of sales going through has improved greatly this year, with buyers spurred on by low interest rates and stamp duty savings. Indeed, the hangover of the Mortgage Market Review is now gone and confidence in the sales market has made a welcome return.
The investment potential:
Savvy investors have begun to focus on areas which offer good value for money and which are undergoing regeneration. The South East London line has done wonders for the region, encouraging a younger demographic and city commuters and as a result of this new popularity, average property prices in our ten South East London located branches rose by 17% last year. At present interest is incredibly high for areas such as Lewisham, Catford, Forest Hill, Crystal Palace, Bromley and Dulwich and all of these areas currently offer high rental yields and the potential for above average house price growth. In particular, the borough of Bromley boasts many locations where this is the case. Key factors influencing their desirability include an influx of high street brands to local high streets, improvements in local schools and better transport links to the City.
High demand for flats:
Two bedroom flats which offer outside space and which are priced at the lower end of the market at around £250,000 and £350,000 are incredibly sought after as they offer the best opportunities for investment. Not only is South East London one of the few regions in London where it is possible to obtain a quality property at below £250,000 but at this level it is possible to achieve a rental yield of over 5%, along with decent capital growth so investors find them appealing too. Analysis of all our properties priced below £250,000 shows that South East London currently accounts for 72% of the property stock, which illustrates why we’ve seen such an influx in the number of first time buyers and buy-to-let investors here at this level.
The family homes market:
The market for homes priced between £400,000 and £800,000 is also incredibly strong. The shortage of stock in this price range means that premiums are being achieved on homes which do come to the market and which are centrally located. South East London has always proved popular among families who appreciate the good quality homes available and green open spaces which can be frequently found. In addition there are some excellent schools and academies with excellent OFSTED reports across South East London.
Over the next few weeks and as we enter the busy spring market activity levels look sure to increase as the weather warms up and both buyers and sellers contemplate making a move. Although the general election is a few months away, I don’t anticipate it having a huge effect on the market but think we’ll see a very stable and progressive year ahead for the sales market.
To find a home in South East London, please visit our website www.kfh.co.uk
For information about selling your home or to speak to one of our local branches, please visit https://www.kfh.co.uk/residential-properties/sales/selling/