The London Barometer September 2014
Monday, September 22, 2014 by Douglas And Gordon
September 2014 / Sales
"August witnessed a stalling market as vendor intransigence trumped buyer expectations of lower prices.
Valuations were 25% down compared to twelve months prior, indicating that vendors are in no rush to sell amidst reports of a market slowdown, while new applicants were at their lowest since August 2008. These buyers are perhaps under the impression there’s more on the market when in fact properties are simply taking longer to sell.
This perceived market slowdown followed the Bank of England’s aggressive application of the brakes with the introduction of MMR, rhetoric around a supposed bubble and the threat of mansion tax; however, with five year mortgage rates forecast below 3% and sellers finally starting to lower asking prices we are looking forward to a healthy autumn.”
George Franks, Sales Director
September 2014 / Lettings
“The number of landlords selling up to realise capital growth has slowed over the last couple of months, while the number of lease renewals and re-lets has increased, generating a buoyant market.
Compared to the same time last year, applicant levels rocketed with an increase of 60% in new registrations. Stock levels were down with 25% less property available to let, heightening demand and, with capital values flattening, creating the optimum conditions for the first growth in rental yields for landlords for some time.
Good news for landlords continues as delays to the introduction of the controversial new rules obliging landlords to check the immigration status of tenants indicate that the programme may not be implemented fully until after the general election and may be scrapped altogether.
We are pleased that from 1 October 2014 it becomes a legal requirement for letting agents to be registered with one of three redress schemes. D&G are already members of The Property Ombudsman and now that all letting agents will be forced to sign up to a Government approved scheme, higher standards will prevail as the industry becomes ever more customer focused.”
Virginia Skilbeck, Lettings Director