In the London property market, transactional volume remains at very low levels with a number of agents reporting sold property figures up to 60% down depending upon area and price.
Garrington has seen prices fall in certain locations, particularly Central London for long-term owned assets and in new build schemes where developers are keen to maintain a steady flow of sales. Whilst some areas have seen rises there is an artificial sense to these gains, as owners simply withdraw their properties unless they achieve the price they want, creating a supply and demand imbalance.
The shortage of available property has meant some purchasers continue to pay higher prices, although recent investment acquisitions within the company have seen as much as 20% being secured off re-adjusted prices for good quality stock. Ultimately it is about knowing your market and knowing the agents, and also which developers or owners are committed and willing to have a sensible dialogue on price.
Our expectation is for prices to continue to flatline, creating a buyers’ market, albeit one frustrated by a lack of stock.
The London housing market
In conclusion, the housing market is being supported by the Government and the Bank of England and they will do everything to prevent a collapse in prices, which would inevitably lead to another banking crisis.
Record low interest rates should remain, albeit with some possible small tweaks to combat inflation. As such, unless there is a change to Stamp Duty our conclusion is for this moribund market to continue for some time into the future. Opportunities will present, as they always do, but they will increasingly only be open to the well-informed and well-connected.
If you would like to find out how Garrington can guide you through the current property market, please get in touch today.