The London Barometer July 2010
Sunday, August 01, 2010 by Douglas And Gordon
Sales: July 2010
"In London we are not seeing a deluge of new property coming to the residential sales market, but the cumulative total is growing month on month because of a slow down in actual sales. In July we took on almost exactly the same number of new properties as this time last year, but the total number of properties available is 68% higher. Douglas & Gordon did agree 28% fewer sales than in June; however this is perfectly normal for this time of year."
"I believe that sales prices in Central London will remain steadfast for a variety of reasons: Demand is still healthy, even at this very quiet time of the year; the coalition government's measures may appear painful, but at least we have certainty; and pressure is growing for banks which are now profitable to loosen their purse strings and to lend again."
Lettings: July 2010
"As is often the case, we are seeing in the lettings market the polar opposite to the sales market. This July we have an extraordinary 80% fewer properties available to let compared to this time last year, and 37% more prospective tenants is creating a very competitive marketplace. As a result, the majority of rental renewals in July increased by an average of almost 5.5%. This big change in the lettings market will tempt back the buy-to-let investors creating more demand in the sales market."
The Douglas & Gordon Average London Rent Index for Q2 2010 shows an average annual increase of 24%, with the biggest increase of 38% for four bedroom houses.