London's prime property market is apparently becoming less and less popular with buyers as sales continue to fall, according to reports. However, figures show that lettings in the area are on the up, which could be indicative of the rise in generation rent among young professionals in the city.
Earlier this month, it was reported that the number of people aged between 25 and 34 who now rent rather than buy their own property has hit a record high. This is because people increasingly want to be able to enjoy the convenience of being able to move home at short notice rather than having to wait until the sell, especially when their career can make moves necessary.
This fact could tie in with the reality reported by JLL, which said that in February, sales of homes in the prime property market in the capital fell by some 22 per cent year on year. This comes on the back of a 34 per cent annual fall in sales in the same sector recorded as of the end of January.
A breakdown in the figures shows staggering falls in the areas of Belgravia, Chelsea, Knightsbridge and Kensington, where combined sales have dropped by 100 per cent, falling from 40 to 19 in the space of just 12 months.
However, while sales are seeing dramatic drop offs across London, the number of people now getting into the lettings sector, buoyed on by its overall strength, is starting to grow. According to W.A. Ellis, a JLL company, investors are seeing the low levels of activity in terms of people buying homes as the chance to get themselves property at a potentially lower price, which pushes up the return on investment they can make.
"The savvy investor is looking to buy to let to increase their portfolio prior to the election foreseeing that there could well be a boom in the sales market once the uncertainty is over and a government in place for another term," said Lucy Morton, director and head of agency at W.A.Ellis.