A Fresh Start in London: New Developments Hope to Lure Buyers Returning to the Market

As spring finally comes to the U.K., it seems there are some welcome green shoots in the property market, too. 

After years in the doldrums, activity began to increase in the latter part of 2019, and then got much busier after the general election on Dec. 12, according to Marcus Dixon, head of research at data company LonRes, which tracks London sales and lettings. His data shows that in Prime Central London, the number of sales of existing stock was up 29% over January and February 2020, compared to last year. 

“There was a lot of worry about the prospect of a [Jeremy] Corbyn government, and what that might mean in taxation at the top of the market. Also, people who were waiting for a Brexit resolution have realized that trade talks may rumble on for a while, so they may as well buy now. Prices are still flat, so there are good deals out there.” 

The monthly LCPAca Residential Index from residential property specialists London Central Portfolio (LCP) tracks every real estate transaction made in the city. Its report from transactions in January showed that whereas prices in existing stock were beginning to recover, prices of Prime Central London’s new developments were still struggling. 

“In January, monthly average prices in new-build over the month fell 4.9% and transaction volumes fell 57.7% over the year to just 257,” said Naomi Heaton, CEO of LCP: “This is 67.1% down on April 2016, when Higher Rate Additional Duty  of 3% came in. Against this backdrop, developers will struggle to break ground on new sites.” 

Yet although prices remain flat, agents say interest in some landmark luxury schemes is building as the stock market fluctuates with the coronavirus, and property looks like a safer and more affordable investment. 

Peter Wetherell, founder and chairman of Mayfair specialist realtor Wetherell, is marketing the super-prime development The Bryanston, which has a unique location overlooking Hyde Park. “I see buyers coming back into the market,” he said. “They see that real estate stock is running low in central London, and new planning restrictions mean that not much will be available in the future.” 

Fewer prime London developments may be coming onto the market in the first half of 2020, but nevertheless there are some landmark schemes from The Bryanston to the historic Postmark in Farringdon and the elegant Cadence in buzzing Kings Cross. Here are the most notable developments launching sales this spring.