With a network of 33 regional offices across England and Wales, including nine located in central London and presence in key cities such as York, Cambridge, Bath, Newbury, Winchester, York and Oxford selling and letting residential homes, Carter Jonas is well placed to ‘future gaze’ and provide some fascinating market insights.
Lisa Simon, partner and head of residential division, said: “Given the year we have all had to navigate, there’s never been a better time to look forward with a renewed energy. In collaboration with our agents, we are pleased to able to tap into their expertise and share our collective vision for 2021.”
A change in consumer mindset
One of the most impactful changes to the market as a result of the global pandemic will be the shift in consumer mindset. Whether moving to a city centre or rural village, buyers are seeking a sense of community and connectivity to avoid feeling isolated, and the social infrastructure of areas will be high on the agenda. There will be a greater emphasis placed on local amenities – including business, education and healthcare.
David Ruddock, partner, head of residential sales operations, commented: “Lockdown has for many reinvigorated urban community life and a sense of loyalty towards the people and places that contribute to an area. It is well documented that there has been a surge of people moving to the countryside, but equally there are those who enjoy being walking distance from the arts, theatre and social scene of a city centre and there are clear health and lifestyle benefits of not needing a car to get about. There is no doubt that across the UK breakout ‘boutique villages’ will emerge within major cities, and in London, desirable areas such as Marylebone, Notting Hill and Barnes will continue to thrive as cultural bubbles.”
Environmentally minded
Much is happening across UK industry to support the government’s ‘ten-point plan’ set out to accelerate Britain’s path to net zero and a green industrial evolution. Firstly, the ban on petrol cars by 2030 will have an impact on landlords, developers and homeowners who will have to respond to a growing demand for electric charging points. Another consideration for landlords will be the need for rental homes to have an EPC rating of C or above from April 2025. The Green Homes Grant available until March 2022, could help landlords make their properties meet these standards ahead of the deadline. Property owners will also need to take a closer look at fundamentals like roof insulation, radiator efficiency and boiler systems to improve ratings and future proof their homes.
Isabelle Branson, head of sales at Carter Jonas Wandsworth, said: “I have definitely dealt with young couples and families who are more aware of their impact on the environment. I had a couple from Fulham, with babe in arms, pull up outside a beautiful Arts & Crafts home in Magdalen Conservation Area near Wandsworth Common in their hybrid car and on the street was an electric charging port. It was like fate had taken its course and they put in a well above asking price that day on their dream home. The convenience of the charging port definitely played its part.”
The new commute
The rules of the commute into the city have undeniably changed since the pandemic hit. With home working, and the demand for home office space still a top priority for buyers and renters, the ‘under-an-hour’ commute is a thing of the past. It is anticipated that more couples and families will consider relocating to areas once considered incompatible with a daily commuting pattern. Cities such as Bath, Oxford and York (and their pretty surrounding villages) that offer the best of both worlds, a more relaxed lifestyle with excellent links into London will become ever more popular. Additionally, there will be a swell of interest in untapped rural pockets of the UK once considered too scenic for Monday-to-Friday office workers, such as The Yorkshire Dales, The Yorkshire Wolds, outskirts of Harrogate and Suffolk’s coastline and villages.
This trend is already being reflected across the regions, with countryside properties receiving higher viewing numbers and letting much quicker, and village location rents being up by 10%. The same applies for sales where larger out-of-town properties are receiving multiple asking price offers.
The city bounce-back
Demand for corporate rentals is expected to increase in many business hub locations, as firms plan some sort of return to physical offices, helped by the roll out of the vaccine and travel corridors opening up. Whilst Prime Central London may take longer to recover from high stock levels, York, Cambridge, Oxford and Newbury could be the first to benefit from work forces gradually returning.
Fiona Minx, head of lettings at Carter Jonas Newbury, said: “Businesses such as Vodafone will be fundamental in supporting the rentals market in Newbury and bringing people back to the city centre.”
Cities, and in particular, the London ‘villages’ of Marylebone, Notting Hill and Barnes, may benefit from a wave of empty nesters, who no longer need the big garden and extra bedrooms for their children, and who now want to enjoy walking to local amenities and the rich culture of urban life.
No time like the present
Time is a more precious commodity in the world of residential sales and lettings. Virtual viewings have assisted in creating an environment in which properties go under offer more quickly. The market is moving so rapidly that many offers are made on the spot, or after only one viewing.
In Cambridge, head of residential, Anton Frost said: “The increased level of requests for virtual viewings has led to a shift to more instantaneous offers from applicants, and physical viewings are no longer considered a must before reserving a property. We are seeing an increase in multiple offers for larger out-of-town properties and we have just secured a let on a six-bedroom barn conversion at £3,100pcm on the outskirts of Saffron Walden, some 25 miles from Cambridge. This is the new age we live in.”
Beyond the Stamp Duty holiday
The Stamp Duty holiday is not the only factor motivating the pre-Christmas market. Whilst many are racing to make the Stamp Duty deadline of the end of March, regional offices are seeing strong pipelines and multiple sales instructions being lined up for January 2021. This is particularly the case in Cambridge, Harrogate and Suffolk, where the team has nine new instructions teed up for the new year, showing the resilience of the market despite the many economic unknowns.