Musings of a London Property Finder

Following other house price indices, the Land Registry house price index published today, showed that London house prices have risen for the first time in a year.  Many will be hoping this marks the bottom of the market, however we think the main inference for London is that the downward slide in house prices is slowing. 

At this time in the year and from our own experience of the market we would conclude that the market will continue to suffer slightly this year but at a much slower rate than last year.  With six boroughs showing positive house price movement in March, some areas are likely to see a steadying in prices, with little fluctuation for the rest of the year.

House prices in London have actually risen overall, but areas showing increases now, such as the borough of Camden, which includes Hampstead and Bloomsbury, tend to have seen large average price falls recently, giving a slight net price decrease.  Prices in the borough of Camden dropped 4.3% in February but rose 2.1% in March. 

There seems to be some levelling out but each micro-area is experiencing the market differently.  For example prime areas such as parts of Westminster and Kensington and Chelsea were cushioned to the effects of the market for much longer last year than other London boroughs but both have been much more prone to house price deflation over the last 6-9 months. 

In our capacity as Property Finders, we have noticed that whereas all but the most desperate vendors were being very bullish last summer, motivated vendors are now pricing competitively in most areas of prime Central London.

Technorati Tags: Camden house prices, Kensington and Chelsea house prices, London House Prices, london house prices rise, London property finders

Tags: Camden house prices, Kensington and Chelsea house prices, London House Prices, london house prices rise, London property finders

Musings of a London Property Search Agent

Releasing the latest property sold data for February, The Land Registry has likened current London house prices to those of August 2006 - which is not too bad considering country prices have dropped to levels last seen in September 2004. 

Several London boroughs have made monthly gains, led by Islington with a gain in average prices of 1.2%.  However there have also been significant price falls, led by the borough of Camden, which boasts the celubrious districts of Hampstead and Bloomsbury.  Camden prices fell 4.3% in February, down 16% year on year.  Other boroughs showing price falls of 3% or more are led by Greenwich where prices are down 3.9% include   Hackney, Havering, Hillingdon and Haringey.

House prices in Westminster and The Royal Borough fell 2.2% and 2.7% respectively in February and have posted annual average falls of 11.5% and 15.4%.

With regard to green shoots, the Land Registry data shows that the number of transactions has started to creep up, from 33% of the norm to nearer 40%.  Estate Agents have been a bit more positive this year and we have certainly seen more activity.  London property Search Agents are particularly interested in the number of transactions per month and for us, the top end is particularly significant.  The number of London property transactions over £1 million has dropped to by 55% - slightly less than the market as a whole thanks to foreign buyers taking advantage of the currency discounts associated by the fall of the pound.  With the dollar and the euro starting to tumble, hopefully the number of well-heeled Asian buyers wanting a UK base will continue to grow. 

Sadly, there are still people prepared too much for property and we have been outbid on one home where we have had to advise our Client not to match the winning bid, as it is far too high.  Contact the London Property Search Agent to find the right price for your dream home

Technorati Tags: Bloomsbury house prices, Camden house prices, Hampstead house prices, Islington house prices, Kensington and Chelsea house prices, London House Prices, London property, London Property Search Agent, London Property Search Agents, Westminster house prices

Tags: Bloomsbury house prices, Camden house prices, Hampstead house prices, Islington house prices, Kensington and Chelsea house prices, London House Prices, London property, London Property Search Agent, London Property Search Agents, Westminster house prices

Musings of a London Property Finder

Average house prices have fallen 10% over the year to the end of October 2008, according to The Land Registry, the government official House Price Index.

London and Brighton property have not fared as badly, down 8.6% and 7.2% respectively although the picture is very mixed for the South East region as a whole.

Waltham Forest was the worst hit London borough, registering an annual house price fall of 9.2%.  Wandsworth and Lambeth have also been badly hit, with average price falls of -7.3% and -8.2% respectively. 

Westminster and Harrow are the only boroughs to have held onto gains made since September last year, registering annual house price growth of 0.1% and 0.7% respectively.  Southwark and Barking and Dagenham registered the lowest falls with reductions of 0.5% and 1.9% with Bexley, Brent, Enfield, Hackney and Hillingdon closely behind with marginal price falls of circa 2% on last year.

Kensington and Chelsea which has generally held up quite well this year dropped 1.7% in October and registered an annual overall price fall of 3.6%. 

During the first quarter of this year it looked like prices were more likely to hold in London than in the South East.  Todays data shows that many of the Home Counties have out-performed some London boroughs.   

Windsor and Maidenhead where there are a plethora of very large executive homes and often little reason to sell in a downturn, has performed the best of the South East regions, registering price falls of 2.7% over the last year - nothing to write home about.  Price falls of under 5% are reported in Buckinghamshire, Thurrock and Surrey and average house prices in Kent are 5% less on the nose.

All other areas in the South East are registering house price falls of above 5% with the most significant house price deflation in Northamptonshire where average house prices are worth 10% less than a year ago.

The number of property transactions has also continued to fall across the board apart from sales of less than £100,000 and yes, there are some in London - there were 58 property sales in August for under £100,000.

Clients who have chosen us as their Property Search Agents will be aware that negotiated final prices depend very much on the situation of the vendor and the realism of the initial asking price, but that price cuts of 20-30%+ and more have become more common.  As professional Property Finders, we try to dissuade Clients from buying properties which we believe are over-valued but although these figures may sound alarming, they are only of concern to people at risk of going into negative equity.  Most people who have bought wisely and had their homes for five years or more should not be affected.

Homeowners wanting to move who have a reasonable amount of equity in their homes should still be able to do so - the key to a successful purchase in this market is:

1.  Ensure that the discount negotiated off the current market valuation of a new home exceeds any negotiation on the home sold
2. Research the new area thoroughly so that you have a good idea of whether it is going to fare well in years to come and take future price falls into consideration when you offer
3. If you  don’t feel confident about the above - speak to a London Property Finder who does - our number is 020 7923 7564

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Tags: Brighton house prices, Brighton Property prices, Hampshire House Prices, house price crash, house price falls, House Prices, Kensington and Chelsea house prices, Kent house prices, London house price crash, London House Prices, London Property Finder, London property prices, Westminster property prices, Windsor & Maidenhead house prices