By Graham Norwood.
One of the most respected buying agents in London says buy to let in the capital is losing its appeal for many investors.
Camilla Dell, founder and managing partner of Black Brick Property Solutions, says in a review of 2021 that while she is seeing an upturn in demand for apartments, buyers are far more discerning than before the pandemic.
“Outside space and proximity to a good local high street are top of buyers wish lists. We are seeing a very tough market for sellers of ex-rental stock located in older new builds, some with cladding issues and which are poorly located and without outside space. There is no market for them, no matter how cheap they become.”
Dell continues: “Unfortunately, not all apartments will make the London-wide comeback a lot of sellers are hoping for. Buy To Let has lost its attraction for many private landlords, meaning ex-rentals are flooding the market with an added surge in apartment listings; supply is at an all-time high, while demand is selective and lacking.
“So unfortunately, unless apartment listings are located near green space, and a great high street they are likely to be difficult to shift.”
Looking ahead to the rest of 2022 Dell believes prime central London will see an influx of interest gravitating back towards the city, as the race for space loses momentum.
And she says there is one area of London at the forefront of interest – Bayswater.
“It is a unique part of London offering inner-city living, with competitive pricing and proximity to green space, reassuring buyers that they can enjoy the outdoors, when some apartments do not have their own outside space.”
And she concludes: “Bayswater is the one to watch. Having previously been considered a less desirable area, compared to its more swanky neighbours, it is becoming increasingly desirable. Buyers are comfortable returning to apartment living, as Hyde Park and Kensington Palace Gardens offer the reassurance of nearby public outside space for those buying a property without a private garden, patio or balcony. Although restrictions have eased, it is likely the pandemic will have a lasting effect on buyers, leading them to permanently consider outside space in their criteria when purchasing in London.”