Musings of a London Property Search Agent

April statistics from the Land Registry House Price Index were published today and showed that London house prices have fallen for the third consecutive month, dropping half a percent versus March.  However there was also good news.

Firstly, average London house prices are still 6.4% higher than they were in April last year.

Secondly the December slide in average London prices of 0.003% which represented a £10 drop on the average London house price is now recorded as an increase of 0.068% which represents a jump of £240 on the average house price.

Why do the figures change? The blame can be laid fairly and squarely at slow legal practitioners. Usually house sales are registered within 4 weeks of the sale, hence the lag in Land Registry house price data versus indices such as the Halifax or Nationwide. Some sales are always registered late and it is these sales which make the difference as the index is updated to take account of late registrations.

The April data shows that London house prices dropped 0.33% in February, 0.48% in March and 0.53% in April. Is this a sure sign of the house price crash, recession and general gloom and doom? Not necessarily. To put these figures into context, the total drop in prices amounts to -1.35%. But London house prices rose 3.74% between August 2007 and January of this year, so since the credit crunch started, prices are up 2.39%. And prices are still 6.4% higher than a year ago.

The percentage of high loan to value mortgages are nothing like as high as the early 90s, so sellers are sticking firm on prices and buyers are having to rely on auctions, repossessions and people like us to sniff out the bargains. In our opinion the London housing market is far too robust to play a major part in any house price crash.  If you want help to find the right place at the right price then look no further than this London Property Search Agent.

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Tags: Average London house prices, House prices in London, london house prices rise, London Property Search Agent, Prices rise in London

Musings of a London Property Search Agent

Nationwide issued their monthly house price data today which showed that average UK house prices fell 2.5% during May, the biggest monthly drop in the history of the index which first recorded UK house prices in January 1991.

We are reserving judgement until we see the Land Registry statistics. Agreed sale prices for April will be released tomorrow and prices for May will be released at the end of June. As a company, we use the Land Registry figures as our primary market indicator because they are based on actual sold prices, so statistical trends are unaffected by sales which do not reach completion. Nationwide base their data on their own mortgage lending post-survey, so for example purchases made by cash buyers, who are one of the most active groups in the current marketplace, particularly in London and the South East, are not included.

We would expect house prices for London and the South East to outperform the rest of the country, but Nationwide only publish regional data on a quarterly basis and unlike the index issued by the Land Registry, the data is not area specific.

With respect to London and the South East, the index showed steady growth quarter on quarter throughout last year, including Q4 following the start of the credit crunch. The index reported a drop of 2.3% for Q1 2008 versus Q4 2007 for London and marginally smaller drops for the South East.

This London Property Search Agent is here to help  you find the right price.

Technorati Tags: House prices in London, London House Prices, London prices fall, London Property Search Agent, South East House Prices

Tags: House prices in London, London House Prices, London prices fall, London Property Search Agent, South East House Prices

Musings of a London Property Search Agent

Property news junkies will know that UK commercial property values have been slipping for some time but it seems enough is finally enough according to an article in the FT today.

Global commercial property agents Jones Lang La Salle have stated that more commercial property is being withdrawn from the market than being sold with £309 million of property deals being concluded so far this year compared with £447 million withdrawn from the market.

So will residential property suffer a similar fate? Yes – if you listen to the likes of George Soros. We don’t think so, as long as the economy continues to remain constant. It all comes down to supply and demand and developments around Canary Wharf and Docklands and new and improved use of space throughout The City has increased commercial square footage throughout London. Simultaneously a slow move towards hot-desking, working from home and an increase in mobile entrepreneurs working from Starbucks et al has eaten away at demand, particularly for the mid to high end office space which predominates. The success of online shopping has inevitably also been a factor in the slide in commercial rates in the retail sector and with the credit crunch preventing many pension funds from investing, buyers of large portfolios are thin on the ground.

Our view is that, although the residential market in London and the South East is slow, there is still demand. Everyone is just waiting for a bargain – witness the packed residential auction rooms every month this year as investors finally get a look in and end-users or residential home buyers realise it€™s just not cool to pay more at auction than you would an estate agent.

Past clients will recognise our mantra: it is about buying the right property in the right location at the right price. If you need professional help – let this Property Search Agent help you; you know our number.

Technorati Tags: Buying at Auction, Commercial property valuations, London Property Search Agent, the City, the right location

Tags: Buying at Auction, Commercial property valuations, London Property Search Agent, the City, the right location