London property 2020: buyers return to the market after Boris Johnson’s election win
House buyers are thinking positive again. Developers report levels of enquiries and forward orders well up on the end of last year.
In the first weeks of the new year buyers have been rushing into show homes and marketing suites, spurred on by Prime Minister Boris Johnson’s landslide general election victory.
Taylor Wimpey, one of the biggest housebuilders, pleased the City last week when it told analysts its forward order book was up 22 per cent in value terms and 17 per cent in unit terms.
It’s a similar story at Galliard Homes, where enquiries at its sales offices are up 26 per cent on last year.
Chief executive Donagh O’Sullivan said: “Since the election we’ve seen a lot more footfall in our sales offices, higher levels of enquiries and purchasers who have been holding back are making decisions.
“There is confidence that whatever is going to happen with Brexit we are going to have stability, a government in place for the next five years. A few weeks ago nobody knew how things would go.
“On Brexit, international investors are philosophical. They, too, see London as a safe, stable environment to invest in. They are encouraged that all the Corbyn initiatives are now off the table.”
Simon Murphy, chief executive of the Battersea Power Station Development Company, said: “We have seen enquiry levels noticeably up since the election, both from international and domestic buyers. We have done seven deals since the new year and we are working on another five or six.”
The upbeat comments from developers come days after estate agent Savills said in its trading update that in the year ahead, “increased political stability in the UK should maintain improved sentiment in real estate markets”.
It was a similar story at rival agent Knight Frank, where global head of research Liam Bailey, said: “The luxury residential market in London has seen a significant bounce in demand. Uncertainty has been replaced by confidence in the first government with a workable majority in nearly a decade.”