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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Tags: Buyers agents, London Buyer's Agents, London Property Buyers Agent, London Property Buyers Agents, property buyers agents

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

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