Demand for Central London homes on the rise

 
Demand for Central London homes on the rise

The desire to buy in Central London's residential property market has been rising in the first few months of 2015, according to the latest report released. It had been the case that in the last few months of 2014, demand in the capital was falling, and even though it was expected to continue to drop into 2015, this has reportedly not been the case. 

Factors such as the election and the uncertainty this brings for homeowners and buyers was expected to have an impact, but JLL said that in reality, the number of people looking to buy in the city has been rising. 

It said that the largest rise in demand has been on property that costs less than £1 million, adding that the change to Stamp Duty calculations had seen this increase, as well as slowing demand for homes priced between £1.5 million and £5 million. 

It said that the change in demand can be seen by looking at the volume of homes being built across the central area of the capital at the moment. It said that there are currently some 26,500 residential units under construction, which is 23 per cent higher than in the second half of 2014, and marks a 41 per cent since the start of 2014. 

"The general election does not seem to have deterred London's developers. The number of units underway has increased significantly over the past couple of years and the election is not halting this," said Neil Chegwidden, director in the residential research team at JLL.

However, he was quick to add that the current levels of demand and construction numbers in the capital are still well below the targets that have been set to make sure that London is providing enough homes in the future. 

JLL added that it hopes the new government, whoever happens to win next month's election, will be doing more to ensure an increase in building. One tactic that has been floated for some time is the release of unused land to contractors to allow for more development.