Diary of an agent: Nicola Federico and Luke Johnson

Nicola Federico (NF) is office head in Fulham while Luke Johnson (LJ) is an agent based in Knight Frank’s Canary Wharf office, from where he also covers some of the Wapping area.

With offers accepted up 129% in the capital in the week ending 4 July against the five-year average, activity since the market reopened in May has been strong. However, how is the rest of the year shaping up and will the surge last?

What is the current state of play in the residential market?

NF – It’s been the busiest seven weeks we have seen for quite a while. It feels like we picked up from where we left off across both sales and lettings.

LJ – Things really took off in June. We’ve had 25% more instructions to sell in the past month than we normally average, so our stock levels are high, albeit we are a high-volume office normally.

What are buyers looking for in a home now?

NF – We have a house we are about to launch with a home office. They are sellers that have moved out to the country. It has a great garden, home office, living space and is close to a park and we expect it to attract strong interest. Another area of the market doing exceptionally well is garden flats – they’ve become a must have. We’ve had competitive bidding on two garden flats round the Parsons Green area.

LJ - We are seeing the much talked-about move to the country, with a number of sellers missing out the next step – typically buying something larger in London – and leaving the capital instead. However, this is being offset by a wave of first-time buyers, who tried to act during the ‘Boris Bounce’ at the start of the year and were frustrated by lockdown. For those buying in London, properties with features such as an outside balcony have become very popular.

What is happening to prices and supply?

NF - There was initially some hesitation coming out of lockdown with owners asking themselves ‘is now a good time to sell?’ We have shown it is a good time with the activity levels there have been. People now have confidence that they can launch in an active market. Anything that’s priced correctly sells well.

LJ - We have seen some Covid-19 related discounting in the developments we sell units within. More generally, sellers were bullish in the months before lockdown. However, sellers are more tentative now, akin to what it was like ahead of last year’s general election.

Are you seeing a change in where demand is coming from?

NF - Buyers from other areas of London are now choosing areas such as Parsons Green, as they can be close to the park or get a larger garden for their money. It feels like PCL residents are coming out to us to get more space with an office or study, something they weren’t looking for before.

LJ - Our first-time buyers come mainly from the local area. Many buyers will have a connection to London’s financial districts and are looking to make use of the DLR into Canary Wharf or to Bank in the City, with 10% of our sales each year pied-à-terres purchased as a crash pad for work.

What will the remainder of the year bring?

NF – Things coming on to the market are now at sensible prices and this in turn is being well-received. There are a number of properties that have been sold at or over guide price. If we stay on track in terms of the lockdown easing and the slow release of the economy, then it is feasible that this will continue. There are no signs that it is slowing down.

LJ - As a high-volume office we will look to get as much under offer as we can. It will be a difficult year for everyone. However, if we accept that and concentrate on controlling what we can, I don’t think we’ll finish this financial year far off where we thought we’d be before lockdown happened.