Market Report – The Matchbox Property Guide 2010
Tuesday, May 25, 2010 by Ivor Dickinson
So, what does 2010 hold for the London property owner? After a slow start February and March saw significant activity in the sales market and prices continuing to rise at the same rate as they did in 2009. However, as we came in to June it was a very different story. It is as if the entire United Kingdom was like a punch drunk boxer, reeling from blow after blow as it discovers the full extent of Blair and Brown’s profligacy over the last twelve years. I seriously believe that the British people are increasingly nervous about the future and the slow decrease in activity in every sector of the property market is largely caused by fear. Never a good emotion when confronting big decisions about whether to rent or to buy, how much to spend or when shall I make my move? The lack of property available to let will mean rental prices increasing month on month and demand for property in central London will mean sales prices holding up, but not necessarily increasing significantly.
The bottom line is that investing in a central London property is always going to be a solid investment and unlike stocks and shares, you can live in it. As the old saying goes, ‘You can never pay too much for a property in London, although you may pay too early’.
Personally, I’m confident that this new coalition can sort out the shambles that is the British economy under a labour government. The full implication to all of us personally will not reveal itself until the end of this year.
Uncertainty is everyone’s fear, so regardless of the positions we are all in at the end of 2010, I expect price rises to stabilise at approximately 10-12% in 2011.