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Find out what’s actually happening in the property market with our detailed but concise and easy to understand overview: When trying to get a handle of what’s happening in the London property market, the facts and figures in the press can be misleading, as they take an average of what’s been happening in the markets throughout the UK. London however, still sets the pace and prime central London areas are actually doing exceptionally well. • “Central London prices have risen 34% since their recent post-credit crunch low in March 2009” (Knight Frank). • London is also the only part of the UK where house prices are now higher year on year. House prices have risen by 3.5% over the year to June (Chesterton Humberts Poll of Polls). • Prime central London according to Savills indices has increased by 6.5% over the same period • This compares to a fall of -1.5% for the UK overall over the same period. Why is the London Property Market Booming? • Stock is low. Owners are holding onto their properties for longer, allowing properties coming onto the market to ask for higher prices. Indeed, demand outstrips supply so much that even a significant increase in sellers coming to the market is unlikely to reduce prices. “Demand is holding steady as new supply looks set to surge – prices will continue to grow, albeit at a slower pace in the second half of 2011” (Knight Frank) • When the financial markets came crashing down in 2008, there was a domino effect on markets globally, including the property market. However, the London property market was noticed to make an early and robust recovery, reinforcing the resilience of London property investments and thus appealing more as a secure investment. • With the economic markets being as volatile as they are, London property is increasingly being seen as a safe investment and asset class, often to hold in a portfolio and pass down through the family. As such, the normal process of outgrowing and downsizing properties by individuals, which creates supply, is no longer as prevalent. The five most expensive areas in London saw an average rise in price to June 2011 of 8.5%, and in general prices have risen 34% since their recent low in March 2009. In fact, as another report indicated “Prices are now at their record high, 2% higher than their previous peak in March 2008” • Owing to political unrest in many countries, international wealth is being removed and invested in prime London areas. London has become the safe bet for those investors seeking both financial security and political safety. The big buyers are the Asians, Europeans, and Middle Easterners, but as reported recently “61 nationalities bought residential property in central London in the twelve months to the end of February 2011.” Also owing to the current exchange rates, now is a good time to be buying in dollars and Euros. HOMES-ONE PROPERTY PULSE... In the opinion of London Property agent Homes-One, prices are now considerably higher than the peak, far more than 2%. For good stock in the right areas we would be estimating that the market is now well over 10% above the earlier peak. Jack Greenwood invites you to get more about passively investing in real estate. He is a professional property consultant and regularly writes on property market, property value, property agents to share his experience. You can visit us online www.homes-one.com to know more about his services like Property Consultants London and London Property Agent.
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