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