London Property News
Nicholas Leeming, major client director of propertyfinder.com comments on the London Property News, "Recent data shows that the UK housing market is cooling. Prices are stagnating and transactions are down. But the market in London and the south east is expected to remain resilient, and the rental market is very perky indeed.
The top end of the market is holding up much better than the bottom. While there has been a significant annual decline in transactions overall, there has been an increase in transactions for all properties over £500,000 (particularly those over £1m). In London and the South East this is a large proportion of the market. Transaction levels and prices for these properties have not slowed as rapidly as the lower end of the market. These buyers tend to have equity already and tend to have a long record with their lenders.
At the bottom end of the market, some first time buyers who manage to secure a mortgage will be taking the opportunity to make opportunistic bids on properties. However, it is becoming more difficult for people looking to make their first step onto the housing ladder as lenders have tightened their criteria. Lower loan to value ratios will stretch many would be first time buyers, and they are likely to wait and see what direction the market takes, choosing to stay in private rented accommodation for longer.
Tenant demand for rental properties is high and rents are rising. In order to get a good deal on a rental property, people thinking of making a move should do it sooner rather than later and try to lock into a long term contract with your landlord."
Comments
Most of these problems are results of the sub-prime crisis in the States, however London is an International city and as such monies come from all over the world, therefore expect local prices to drop but the high end inner city properties will not fall as much.
Posted by: Chris Heath | February 21, 2008 10:04 AM