Musings of a London Property Finder

At first glance the latest house price report produced by the Land Registry makes for worrying reading for London investors or those who have just bought a new London home.  According to the Land Registry, house prices in London dropped by 1.5% in May whereas those in the South East – the Home Counties to you and me, drifted up by 0.5% on average.  These figures are ’seasonally ajusted’, which at this time of year, means the index-gurus adjust the indices down to reflect the fact that this is traditionally one of the busiest times of year in property.  So house prices in May in London have probably increased slightly in reality in common with the non-seasonally adjusted figures in other house price indices. 

The other point to mention is that house prices outside London fell much more quickly than they did in London.  According to the Land Registry, average London house prices are on a par with where they were in July 2006.  House prices in other parts of the South East have fallen back to levels last seen in May 2004.

In 2007  and 2008 we predicted that London house prices would return to 2006 prices and stabilise there for several years and it certainly looks like that is what is happening.  Expect pricing to bump along for the next few months and cool off in in the Autumn.  There has been much debate about what will happen thereafter – some are predicting a 20% bounce in 2010, but we are taking a more pragmatic view.  

In our role as Property Finders in London and the South East, our main problem is finding enough quality property to show Clients.  The shortage of supply is fueling pricing at the moment as demand is high for good well-priced property.  In London, demand is stronger as a good lateral flat or well-located house have excellent prospects for the buy-to-let investor.  Even in a downturn, there will still be people with the money to rent in London and with other methods of saving offering little return, there has been a definite shift back to investing in bricks and mortar.

The key point is everything seems to be stabilising, but if you instruct the right London Property Finder, you should be able to get your hands on a bargain, whenever you enter the market.

Technorati Tags: bargain London property, House Prices, London Property Finder, the land registry

Tags: bargain London property, House Prices, London Property Finder, the land registry

News from the front delivered by a London Buyers Agent

The NAEA (National Association of Estate Agents) has announced that demand is outstripping supply across the UK housing market, with estate agents registering four home buyers to every available property for sale.

The monthly market survey of the National Association of Estate Agents found that the average branch had 299 home buyers on its books in May €“ up from 265 the previous month and 247 in May 2008. The average branch had 69 properties on its books. For the second month running estate agents also reported a successful selling period, with the average branch selling 10 properties a month – a 30% increase year on year.

Commenting, Gary Smith, President of the NAEA, said: €œThis is really good news for the housing market and the UK economy in general.

€œNAEA members are showing that there are buyers a-plenty out there. More often than not these are also potential sellers who are at the beginning of the process €“ so there is bound to be a lag which creates a shortage of properties in the short term.

€œWith mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession.”

Confident words indeed but no Buyers Agent based in London can deny feeling the slight bounce.  I never thought I’d say this but thank goodness for the HIP!  It’s keeping vendors away, limiting supply and fueling demand for great property not on the market. And since we buy so much property off-market, that’s just one area we can add value!

Technorati Tags: home buyers, London Buyer's Agent, market forces, NAEA, off-market property

Tags: home buyers, London Buyer's Agent, market forces, NAEA, off-market property

Musings of a London Buyers Agent

Fitch, the ratings agency have indicated that they expect 22% of London homeowners to fall into negative equity in the next 2 years, even if they have unblemished credit records and are therefore deemed ‘low risk’ by lenders.  Speaking to the Evening Standard, the agency says that 8% of Londoners are already in negative equity but that the figure would triple if house prices continued to fall. 

Fitch think prices will fall 30% below their peak in 2007 but pricing in London is definitely stabilising, partly due to market forces, notably a supply shortage and investors keen to enter the property market whilst bank rates are low and property prices sufficiently realistic to provide a return on the investment.  It is also interesting that Fitch thinks London is so vulnerable, given the capitals resilience historically and its obvious appeal to overseas investors.

For us the message is clear however.  If you don’t want to be one of the 22% who fall into negative equity – call us and we’ll make sure you don’t by helping you to buy for the right price in first place.  Some Buyers Agents focus on close ties with key agents in prime areas.  We have contacts all over London and focus on delivering ROI on every purchase we make.

Technorati Tags: Fitch, London Buyer's Agents, London negative equity, Negative Equity

Tags: Fitch, London Buyer's Agents, London negative equity, Negative Equity