A view of beautiful houses in North London

London property market: demand increasing from buyers and tenants

Recently, the London property market has picked up pace with a rise in demand from both buyers and tenants. What does this mean for the sector?

In the past few years, the London property market has been the most susceptible to fluctuations affected by the UK’s economic and political situation. With the uncertainty due to the COVID-19 pandemic, 2020 was a challenging year for the sector. However, the London property market picked up pace in 2021 with a particularly strong performance in March.

The stamp duty holiday extension and easing of lockdown restrictions has brought the London property market to life. Additionally, with more confidence returning to the sector, more buyers are viewing properties. And more sellers are putting their property onto the market.

Strong buyer demand

Data from estate and lettings agency Chestertons reveals there was a 57% rise in the number of people looking to buy in the capital from February to March. Additionally, there was a 39% increase in property viewings and 28% increase in offers made by buyers.

Across the UK, there has been a widening gap in supply and demand. However, in London, there has been a 40% rise in new properties coming onto the market. This is helping keep up with the strong buyer demand. Additionally, if this continues, house prices will likely remain stable.

Guy Gittins, CEO of Chestertons, comments: “Compared to previous years, the London property market has got off to an incredibly strong start in 2021 but it really accelerated and set new records in March. It is clear that people are now preparing for life after lockdown and having a suitable home is a top priority.

“To date, it has been the most active market we have seen since 2006 based on the volume of property transactions, conducted viewings and the number of buyers entering the market. Equally, we have seen a steady increase in properties coming to the market which, in the long run, will result in property prices staying pretty flat.”

How long are property transactions taking?

With the strong demand in the property market, this is causing property transactions to take longer than usual. This is being fuelled by many buyers hoping to beat the stamp duty holiday deadline. Professionals in the property industry, especially conveyancers, are feeling the pressure.

In Greater London, house sale transactions are taking an average of 108.25 days to complete over the past year, according to Property Solvers. The data included analysing more than 9,601 property sales between April 2020 and April 2021. And this research shows some areas are selling much quicker than this average.

The SE9, N4 and NW6 postcodes are the fastest areas, taking 80, 85 and 86 days to sell respectively. On the other hand, the SE12, RM12 and SM6 postcodes are the slowest. Property sales are taking an average of 129, 128 and 126 in those locations.

Ruban Selvanayagam, co-founder of Property Solvers, says: “Despite the broad level of inactivity under the first COVID-19 lockdown, the estate agency industry has recovered relatively quickly. Whilst buyer demand certainly hasn’t waned as many predicted, the time for house transactions to complete has certainly lengthened.”

“Many solicitors, mortgage brokers and other professionals in our sector have been working from home which has often resulted in further administrative and other operational delays. However, with restrictions gradually being lifted, and more people returning to office, the property buying and selling process should hopefully accelerate.”

Rising demand in the lettings sector

Last year, rent across the capital decreased significantly. This is predominantly down to some tenants facing financial difficulties and job uncertainty due to redundancy and furlough. Additionally, with the rise in remote working, some tenants looked to move out of the capital. This caused supply in the private rented sector to increase substantially last year.

Recently, the lettings sector in London has seen a strong rise in activity. Chestertons saw a 21% increase in tenants registering with their lettings department. There were also 38% more tenants moving into rental properties, and 12% more new rental properties came to the market.

With lockdown restrictions continuing to ease, demand for city centre properties is on the rise again. This will likely continue in the coming months as more offices and businesses open and more socialising is allowed.

Cory Askew, head of sales at Chestertons, concludes: “With people’s lifestyles changing almost overnight, larger properties with gardens outside of Central London have been the big winners from lockdown and although they remain in strong demand, we are starting to see buyers and tenants returning to more central parts of London in anticipation of returning to their offices in the summer.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT