A top-notch real estate price measure in central London has seen annual growth for the first time since the UK voted for Brexit in 2016.
Although it rose only 0.3% in May compared to the same period last year, the first annual gain in five years underscores just how much the “recovery of the real estate market in [prime central London] does not depend on the reopening of international travel, ”real estate agency and real estate consultant Knight Frank said in its monthly index on Friday.
Foreign buyers have been scarce since the coronavirus pandemic began restricting travel.
The gradual and continued easing of international travel rules will boost central London’s main property market, especially in places popular with overseas buyers such as Mayfair and Knightsbridge, “but prices are on the rise anyway,” Tom Bill, responsible for UK. residential research at Knight Frank, said in the report.
“Things are picking up where they left off after the general election in December 2019 and buyers can recognize good value after five or six years of falling prices,” he added.
The election ended with the re-election of Prime Minister Boris Johnson and his Conservative Party, and the resulting political clarity – a factor sorely lacking in the country’s real estate market – led to a wave of buyers returning on the market in what has been dubbed the “Boris rebound”.
The recovery only lasted until the onset of the pandemic in the spring of 2020, and house price inflation in central London had yet to make year-over-year gains over the other before the pandemic strikes, according to the report.
Prices outside London, however, rose 3.1% during the year through May, driven by demand for more space and access to the outdoors, which did not It’s not as readily available in the center of town.
The gains were biggest at Wimbledon, home to the famous tennis tournament of the same name, where prices jumped 9.4% at the same time.