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London Property Still Impresses
December 2, 2009Article by Ray Withers
With the worst part of the recession and credit crunch now apparently passed, the property market in London is demonstrating a key sign of economic recovery, as the last quarter of 2009 witnessed continued confidence in market sales. Properties for sale- whether apartments or houses- have been coming onto the market much more frequently now, with sellers realising that sales are becoming both more profitable as well as turning around quicker.
Data from leading London estate agents suggests that the number of buyers registering with agencies has skyrocketed by almost 70% from this time last year, lending some statistical verification to the increased confidence of the London property market. Furthermore, there has been an 80% rise in agreed sales over the same period.
Partially this trend might be attributed to the greater willingness of banks to allow mortgage-lending. One way to measure this is by looking at the downward trend of abortive sales to a five-year low, indicating confidence in transactions and security-lending.
The London rental market has contracted slightly after an unexpected upsurge in activity during the final summer months. Available stock has shrunk by around 13%, though this has been attributed to the decline in the phenomenon of the ‘accidental landlord,’ whereby owners who wished to sell were forced into renting their properties as a result of lack of sales activity. However, with a recovery in the London sales market, increased demand for houses for sale means that these accidental landlords are now selling up.
Nonetheless, demand for rental property continues to be high- around 20% higher than this time last year, and so in areas where stock is in short supply, there are definitive signs that rental rates are starting to increase. Landlords as are such advised to take advantage of these favourable market conditions!
– Thankyou to Hamptons for their independent research.
Written by: Christopher Chadd