The London Barometer October 2015
Monday, October 12, 2015 | by George Franks and Virginia Skilbeck
October 2015 / Sales
“Rising house prices, SDLT levies and expectations around interest rate rises put the brakes on London’s property market earlier this year. However, a slowdown in the global economy, a dip in oil prices, and a general lull in consumer sentiment is compounding a dull market in the capital resulting in a 12 month slump in properties under offer.
“While offers made and transactions completed indicated an early autumn spike last month, market momentum has since waned. Although stamp duty has slowed the house market over £2million, for vendors who are prepared to consider reducing the asking prices the existing pent up demand means deals are there to be done.
“Unusually for a low supply / high demand market buyers are watching the market closely for any sign of a price reduction. But in a market where the burden of mortgage debt is relatively low, vendors have little motivation to sell for less than the asking price.”
George Franks, Sales Director
October 2015 / Lettings
“As we enter the autumn market, levels of supply remain consistent compared to this time last year. Historically the rental market thrives when the sales market languishes and with demand from tenants increasing year on year we are seeing a buoyant market right now.
“The market for flats in all areas is firm but the house market in some of our core areas is weak due to reduced corporate budgets, companies relocating single people to save on costs and corporate relocation agents looking outside traditional areas and into new areas where rents are cheaper.
“Following the peak activity of summer, the rental market remains active with 15% fewer tenancies ending and 20% more reinstructions than a year ago. Landlords have little inclination to sell, and flats are proving to be a firm investment for those seeking to expand their property portfolio.”
Virginia Skilbeck, Lettings Director