Research compiled by Inspired Homes reveals London’s best locations for developers within the £600,000 Help to Buy threshold, reports Show House.
Selecting over 100 postcodes in Greater London, the research ranks locations on the absorption rate of new-build properties priced below £600,000. The absorption rate is the inverse of months of supply. For example, if there are 100 properties listed for sale in a certain area, and 10 sold over the last month, the absorption rate is 10/100=10%. An absorption rate of 20% or higher means that properties are selling quickly and the market favours sellers.
When London’s property market says no, Birmingham will welcome you
With an absorption rate of 20%, the top ranked location for new-build developers is Camberwell (SE5), followed by Finchley (N3) and Plaistow (E13) in third place.
However, with an average price of £513,616, Camberwell is also the most expensive location in the top 10, with Plaistow the most affordable. The locations with the lowest absorption rate are Hendon (NW4) at 1.9%, where properties were listed for an average of 54 weeks, Tooting (SW17) and Ealing (E5).
Neil Taylor, Sales Director at Inspired Homes, said, “Our research paints a picture of how successful developers have been in locations across London. New supply in top spot Camberwell is being absorbed faster than in any other location in London indicating its popularity amongst buyers as well as an undersupply of new homes.”
“In locations such as Hendon and Tooting, the absorption rate is a lot lower indicating a buyers’ market. As a developer, you are likely to enjoy greater sales success by building in a top 10 location like Camberwell or Croydon where the absorption rate is higher.”
Meanwhile, buyers considering a prime London apartment are being invited to try before they buy.
Would-be purchasers can let the luxury apartment on Ovington Square before making a final decision to buy and leading prime London estate agency, Russell Simpson, says the trend is growing.
A short-let on a luxurious duplex apartment costs £6,500 per week, a long-let is £4,750 per week and to buy outright is £4.5million.
Ovington Square has long attracted A-list celebrities such as all four members of The Beatles, Bill Gates, T.E. Lawrence, Woody Allen, Joan Collins and Sienna Miller.
Hattie Russell, Sales Manager at Russell Simpson, says:
“This is an extraordinary apartment on one of London’s most sought-after areas. Typically, a seller would only put their home up for sale, but after the market-altering events of 2016, we’re seeing a shift in the attitudes of buyers and sellers. Already this year we’ve had two other instructions giving buyers a variety of options to capture the homes they truly desire, offering both short and long term lets, as well as being available for outright purchase. We certainly think this is going to be an ongoing and much-talked about trend throughout the year.”
