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June 23, 2009Article by Ray Withers
The number of sales has increased two-fold since last year
The month of May showed the increasing trust of buyers in the London property market with encouraging increases in property demand. The biggest difference is to be noted between this year compared to the last, with sales doubling both in quantity and quality. This has resulted in decreasing numbers of properties for sale leaving many clients empty-handed. The competition is fierce as in some areas the number of interested customers has increased about 4-fold compared with the beginning of the year, while at the same time the availability of real estate is decreasing annually. In areas across London a fall in stock of about 31% year or year has been seen.
The significance of this is slowly reaching possible sellers while many remain unaware that the current situation has not been this favourable in months. The imbalance between available London properties and the demand for property represents an obvious message and opportunity for anyone considering selling. Prospective buyers are prepared and looking to use their finances on newly available properties.
Tenants continue to rule the market
The number of individuals completing a tenant’s application decreased somewhat in May in comparison to April and March. Numbers, however, are still above those of 2008 as registrations have increased by 50% since then. Apartments and houses for rent continue to be available at a high level 9% above that of last year.
Many regions are influenced by decreasing corporate demand resulting in a decrease in rental prices.
It continues to be a tenants’ market as the imbalance between available properties for rent and demand thereof remains allowing prospective tenants to view a large number of flats, applying to a number of them and taking their time to make a decision. This invariably results in a great number of deals falling through at the last minute. Landlords are additionally facing the difficult problem of having properties standing empty for long periods of time. To evade such void periods as much as possible many landlords have been forced to be flexible and cooperative often resulting having to agree on lower rental prices.
There has been a slow advance in the sales market which has pushed a few landlords, albeit somewhat unwillingly, to consider selling their properties. There is a possibility that if continued this trend will eventually lead to a shortage of rental stock.
According to research carried out by Hamptons International-property management company
Written by: Christopher Chadd