The London Barometer July 2011
Monday, August 15, 2011 by Douglas And Gordon
Sales: July 2011
“Despite stock levels down by 40% from last year buyer numbers have fallen by only 20%. This has led to a very busy summer with buyers looking outside their original search areas and higher than expected levels of business reinforcing London’s safe haven status.
“With the Fed announcing a two year freeze on interest rates, and supply at what’s usually December levels, it’s looking like demand will continue to outstrip supply leading to higher prices during the Autumn.”
Ed Mead, Director
Lettings: July 2011
“We have seen 68% fewer tenancies ending in July compared with this time last year, further highlighting that tenants are choosing to stay where they are for the time being.
“Although there are 40% less properties available to buy, we have seen 20% more rental properties coming to the market, perhaps as a consequence of rising rental prices making buy-to-let properties more attractive to investors.
“There are signs that the dramatic increases in rental prices seen in the last two years will start to slow as supply starts to exceed demand.
“For the first time, we have seen more people choosing to rent rather than buying, showing that like many European countries, renting long term is becoming much more acceptable and popular in London.”
Virginia Skilbeck, Director
Download the July Barometer here - D&G_July_2011_London_Barometer.pdf