Market focus:
Wapping & Limehouse
Sentiment across the prime London market has improved since the start of this year after the political and money market upheavals in the wake of September’s mini-budget.
The landscape for the housing market is now different to that of recent years, as the bank base rate is now higher than the ultra-low rates of the last decade.
However, at the same time, mortgage rates are starting to fall, and lenders are competing for business, creating more advantageous conditions for buyers than several months ago.
The overall economic picture is also brighter than October and November last year, with forecasts now for a shallower, shorter downturn. Buyer demand and overall conditions are more like those in the pre-pandemic years of 2018/2019, but deals are still being done, especially where there is realism around price levels.
The rental market remains very busy, with a continuing imbalance between limited supply and high levels of demand continuing to push up rents, albeit we expect the rate of rental growth to ease through 2023.
36%
of houses and 18% of flats currently for sale in E1 and E14 are currently under offer
4%
the rise in average sold prices in Wapping, 2022
19.7%
the rise in average asking rents, Tower Hamlets, 2022
Sources: Land Registry, Gov.UK, Lonres, Cluttons, Rightmove, Zoopla
Waterfront premium
Our analysis of sale prices for flats shows that proximity to the water generally comes with a premium. There will be exceptions to this – especially given the high quality of developments recently completed and under construction in and around Wapping and Limehouse. The sale prices will also be influenced by the type and size of stock. But based on sold price data in the first three quarters of 2022, the average value of sold flats within 250 metres of the river was more than 40% higher than flats further inland, with an average sold price of £734,000.
