There have been mixed reports about the state of the property market this summer; and when you stop to consider the sheer number of different indices from which you can base your opinion; it’s somewhat unsurprising that reports range from the optimistic to the downright depressing.

Primelocation and Zoopla for example, track the asking price, not the sales price, which provides a current, if rather an inaccurate and negative view of the market. The Land Registry House Price Index (HPI) on the other hand is based on the sold price. Although perhaps not as up to date as other reports, the HPI does have the benefit of being the most accurate indicator of the state of the housing market.

So, how is property faring in the summer of 2010? According to the HPI, house prices in London at least are at the same levels they were in 2007.

In England and Wales there has been a significant growth in the volume of properties on the market that have sold at over £250,000; this growth more than doubles at the highest end of the market.  In London the number of properties sold for more than £2,000,000 in April 2010 has almost quadrupled compared to the same time last year.

As Manse & Garret predicted three years ago, the high end prime central London market is flourishing, in particular in Kensington & Chelsea, where the average price of a property has increased by more than £6,000 since May. There will continue to be demand for high end property in prime central London, where property tempts buyers not only from the capital and the UK, but from the rest of the world.  The UK property market, like the UK economy may still be on shaky ground, but for overseas investors prime central London real estate will always be a fairly safe haven for cash.

Supplied by the Land Registry

Musings of a London Property Buyers Agent

The monthly house price index, published by the Land Registry has shown that London house prices jumped 2% in June, with pricing in the rest of the country broadly stable. 

Prices in Hackney increased by 2.7%, the highest increase, whilst those in Newham suffered most, posting a decrease of 2.7%.  Prices in Westminster, home to Belgravia, Mayfair, Marylebone and parts of Notting Hill were flat, dropping .2% since May. 

Prices in the Royal Borough of Kensington and Chelsea however followed the trend, increasing by 1.8% in a month.

To put these amounts into context, they are similar to the monthly increases we saw in 2007, although almost every borough posted house price increases then.  These new statistics mean that London prices are now down by just less than 15% since their peak.  Prices in the South East are now approximately 82.5% of those acheived at the top of the market.

There is no data on volumes of sales since the market turned in May, but we would expect an increase in activity from anecdotal evidence, hampered by a lack of stock on the market.

All in all this survey doesn’t provide much of a surprise but acknowledges what we have seen in the market and confirms the data provided by other house price indices.  Regular readers will be aware that we rely mostly on the Land Registry data, as it is based on actual sold prices so takes account of gazundering/gazumping post offer and down-valuations imposed by surveyors, unlike indices produced by most other bodies.

First time buyers should not feel too disheartened as we suspect there will be a downturn at the end of this year but the considerable jump in values in London shows that there is considerable appetite for London property and with stock very limited, I suspect this London trend will continue, albeit with significantly lower incremental changes.

Prices across England and Wales as a whole are stable, with only a 0.1% increase in June.  For more information please don’t hesitate to call us, the London Property Buyers Agents on 020 7923 7564.

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Musings of a London Property Finder

The RICS (Royal Institute of Chartered Surveyors) have supported our anecdotal musings, stating that price expectations for London over the next six months are positive, given the lack of new instructions and burgeoning lists of wannabe-buyers.  In the RICS monthly house price survey published today, the Institute have declared that they expect house prices in London to rise for the first time in two years.

As we reported last month, the RICS statistics show that London house prices have been largely rising this year.  Their report also signals house price increases for the South West and that prices will remain flat in the South East overall.

The surveyors have made clear that price increases are due to a lack of supply, partly, as a result of the introduction of HIPs, as we have been saying for months.  They suggest that any significant increase in houses for sale is likely to lead to house price deflation once again, as they are currently reproting in the North and in the Midlands.  In fact it seems that there is a direct corelation between the areas where house prices show most growth and the areas where most property for sale.  Supply vs demand.  Simple really.

As for us, we’re sticking with our theory that the back end of this year will be a good time to buy.  Only time will tell whether we or the RICS are right, but if you want the right house at the right price - then this London Property Finder is probably one of the best house price anoraks around!

Technorati Tags: house price crash, London house price crash, London House Prices, London Property Finder, london property search

Tags: house price crash, London house price crash, London House Prices, London Property Finder, london property search