According to research, Londoners bought homes worth a collective £27.6bn over the course of the year – the largest amount spent since 2007. Sevenoaks, Windsor and Maidenhead and Oxford were the three areas that experienced the biggest increase in the share of homes bought by Londoners, compared with 2019.
The research also found that the average distance moved by a Londoner buying outside the capital hit 40 miles for the first time in more than a decade, up from 28 miles during the first three months of the year.
The surge in demand for property outside the capital was partly driven by a desire for larger homes with more space for home offices and gardens, as unprecedented numbers of people worked from home for extended periods. The same trend was experienced in other big cities across the country.
Stuart Williams, Founder and CEO of Thirlmere Deacon commented: “Demand has been shifting away from London for some time and this year, the number of relocations skyrocketed in a trend that’s set to continue.
“Large cities away from the capital have seen increased interest and we have seen a boost in investor demand for properties across Manchester, Liverpool, Leeds and Birmingham. Location has been key for property investors during 2020 and this theme will continue into 2021.
“Successful investors recognise the importance of purchasing property with a long-term view. When they look at buying a property, they first consider where is this property going to be in 5-10 years and aim to double the value and triple the rent.
“Unfortunately, there’s no crystal ball. Most mistakes are made in the property market when investors are trying to hit a goal over a short-term period. If you need to get things turned around quickly, you're in the lap of the gods. I've said this once or twice before. It's about looking long-term - whenever investors are buying a property, they should look five, eight, 10 years down the road, at least.
“Discerning buyers can confidently make well-informed purchases with the guidance of an experienced investment consultant. There's always going to be opportunities. For example, the towns and cities in the North are continuing to lead the way on capital growth and yields, outside London.
“Manchester continues to be one of the UK’s top-performing investment cities. Though it’s been an investment hotspot for some time, Manchester still offers an exciting opportunity for investors. The city is a leading European business destination and has attracted more foreign direct investment (FDI) than any other city in the UK outside of London. Regeneration continues across the city, including a £1.4billion development which works began on in December 2020.
“As one of the most established large cities outside of the capital, Manchester has attracted young professionals in high numbers; between 2002 and 2015 employment numbers grew by 84%. The economy in Manchester is growing at an incredible rate with no signs of slowing down.
“There's always going to be money to be made. The fact remains that people will always need a place to live. So investors should stay positive and calm and keep looking forward.”
