JLL Residential

Sales and lettings market comment, June 2017

London, 8 June 2017

This month, our sales and lettings staff teams based in JLL Greenwich and Blackheath discuss the outlook for the south east London Residential market.

Over the past 6 months JLL’s flagship south east London office, located in the heart Greenwich, has undergone an extensive refurbishment program. We worked hard to ensure that our clients did not experience any disruption while works were underway, and we are excited to show you our new agency offering.

The office’s high quality fit-out, delivered by JLL’s Tetris team, emphasises our commitment to the local market and our ambition to continue growing our presence in south east London.

Greenwich and Blackheath's agents recorded impressive successes in the first half of this year, selling and completing on some of the south east’s most desirable properties. Diamond Terrace and Georgette Place in the centre of Greenwich proved perfect examples - from pitch, strategy and sourcing the right buyer, through to exchange and completion.

While applicant enquiries and registrations have declined in the run up to June, mainly due to political and economic uncertainty, our agents have benefited from strong links to a core of highly motivated buyers and sellers. These individuals have helped to create a less frantic atmosphere within the south east’s sales market. This mini-market is also very diverse and includes a broad mix of upsizers, downsizers and first time buyers.

We believe that sales values in Greenwich and Blackheath will hold steady throughout the summer months. The market remains cyclical and increased interest from buyers in September will make for a strong end to the year as chains will need to be completed before the festive period begins.

The second quarter of 2017 has treated Greenwich and Blackheath well. The local lettings market has proved to be buoyant and active, and shows no signs of slowing down in the near-term. The high end of the market is in particular demand, with interest from patient applicants who are planning to buy, but choosing to rent whilst keeping an eye out for their ideal property.

Q1 saw an oversupply of rental properties throughout London, especially houses and flats with two or fewer bedrooms. Stock levels are now returning to normal, which means that there will be more pressure on potential tenants to commit to properties quickly.

The majority of applicants who approach JLL Greenwich and Blackheath work in The City and Canary Wharf, where uncertainty around the effects of Brexit is acutely felt. More and more applicants are now insisting that their tenancies include a break clause, to give them piece of mind ahead of a new Government forming following the result of the general election and the start of negotiations with the EU.

All of these factors add up to a price-sensitive market. However, as long as landlords are flexible on price, properties will let quickly with little or no void period.