The London Barometer April2012
Thursday, May 10, 2012 by Douglas And Gordon
Sales: April 2012
“The London property market continues to be hindered by the lack of finance available to buyers which has increased the period it takes for a
property to exchange to at least 9 weeks.
Supply appears perhaps lower than it is because many good properties are put under offer immediately but then take months to exchange
because of these insufferable mortgage delays.
With interest only mortgages becoming a thing of the past, many first-time buyers are simply unable to afford the high deposits being demanded
at present and that shows little sign of changing.”
Ed Mead, Sales Director
Lettings: April 2012
“Over the past two years, London has experienced a rental market boom with prices increasing dramatically and renting becoming the norm for many Londoners. This is now starting to ripple out to other parts in the UK and as buyers are priced out of the sales market, and are unable to get mortgages, they are opting to rent long-term. Although owning a property is engrained in the British psyche, it is predicted that in future years lifetime renting will become more acceptable.
The rental market is becoming increasingly busy as we go into Spring and we are predicting another busy Summer, although it is yet to be seen what effect the ‘Jubilympics’ will have. Rent increases have slowed down and some properties are not quite achieving the same rent as they did a year ago, our advice to Landlords is be more realistic about the rental price rather than holding out for prices that were achieved during the peak to prevent a void period. In some of D&G’s areas, particularly South of the River, a number of Landlords are selling their rental properties as capital values continue to go up almost in front of your eyes. Demand is consistently strong and good, lettable properties are going fast.”
Virginia Skilbeck, Lettings Director