Research conducted by estate agent Winkworth suggests that the Central London sales market could be on the road to recovery.
Winkworth Price Guides from April 2008 to September 2009 demonstrate the deceleration of decline and, in some cases, rise in prices. Three bedroom houses and four + bedroom houses in Central London have actually increased in average minimum price over the course of September 2008 to September 2009, and are almost back at the same levels as in April 2008.
The average UK home rose in value by 0.01 per cent from September 2008 to September 2009, (Nationwide). Three bedroom houses and four+ bedroom houses in central London rose by seven and 13 per cent respectively in the same period, said the estate agent.
In central London, property has always been in short supply, sais Winkworth, which is helping to push prices up. London is a sought-after location and so demand will always be high, stemmed by the lack of stock available.
Alex Thomson, director of Winkworth Notting Hill said: “A severe shortage of stock continues to underpin the market recovery. Vendors are disinclined to sell for two principle reasons: they still incorrectly believe it is a poor time to sell; and low interest rates enable them to wait.”
Cash buyers have dominated the central London market since the beginning of the year, said Winkworth. These include buyers looking to capitalise on their comparative advantage over those needing financing, buyers whose money earns nothing in the bank, or buyers who are sitting on funds they would rather not re-invest in other assets just yet, it added.
There has always a lot of interest in the London market from foreign buyers, and now the pound has fallen there is even more interest coming from overseas, the weakness of Sterling adding to already discounted prices.
Tom Dogger, franchisee of Winkworth Knightsbridge & Chelsea said: “2009 has seen a huge increase in the number of purchasers enquiring to buy central London property from overseas. This typically comprises Euro-based applicants and individuals from the UAE. Due to the difficulties faced by buyers residing in the UK attempting to secure mortgages and the instability of jobs and bonuses within the City, we have found that overseas purchasers currently comprise approximately 60 per cent of our enquiries."
"London is certainly seeing a greater recovery than many other cities, although this has in most cases followed a steeper fall too, with peak to trough falls in the region of 35 per cent in Notting Hill, for example. The sentiment of the property market has been self perpetuated with buyers reassured by other competing purchasers."
Ian Fraser, estate agent with Winkworth Islington said: “The central London market appears to have made a startling recovery over the last few months. Properties were selling at 25 – 30 per cent below peak prices in the autumn of last year. That figure is now less than 10 per cent away from the previous top of the market for better quality stock. We have registered far more buyers over the last four months than we did even in 2006 or 2007.”
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comment below should have been under - Fitch warns property values will fall again
As to differences in opinion on prices and what is right the following is taken from your article today titled London prices on ‘road to recovery’, says Winkworth
"London is certainly seeing a greater recovery than many other cities, although this has in most cases followed a steeper fall too, with peak to trough falls in the region of 35 per cent in Notting Hill, for example. The sentiment of the property market has been self perpetuated with buyers reassured by other competing purchasers."
Ian Fraser, estate agent with Winkworth Islington said: “The central London market appears to have made a startling recovery over the last few months. Properties were selling at 25 – 30 per cent below peak prices in the autumn of last year. That figure is now less than 10 per cent away from the previous top of the market for better quality stock. We have registered far more buyers over the last four months than we did even in 2006 or 2007.”
You can make what of you like of stats – different areas will have different experiences and it is possible that all the different views are correct in part.