London property market stabilising
Repossession levels soar amid widening gloom
Friday, 09, May 2008 09:05
The London property market is returning to stability despite wider gloom, according to the latest research from Kinleigh, Folkard and Hayward (KFH).
The estate agent has examined individual areas of the capital, and finds prices are reaching a plateau in the majority of areas, with demand also constant.
For example in Kennington prices have fallen ten per cent in the last year, but have stabilised in April.
"In April we were instructed on a similar number properties compared to the previous month and the number of buyers has remained at the same level, however we are still quieter than last year," explained Justin Bhoday, sales manager of KFH Kennington.
"There is demand across the board; from ex-local authority flats priced under £200,000 up to four bedroom family houses priced at £750,000," he added.
Similarly in Highgate buyers are still moving, realising pricing is key to a successful sale.
"Some sellers are sitting tight, but many people have to move through jobs or schools and for these people, cautious pricing is the key," said Matthew Smith, sales manager KFH Highgate.
"Most sellers have come to terms with the fact that prices have changed."
Figures from the Land Registry show prices in the capital increased by 0.6 per cent in March, and by 10.5 per cent over the previous year.
The government report also finds the average price for a property in the capital now stands at £357,675.
Lenders must pass on Bank of England interest rate cuts in order to stimulate the market further, argues KFH.
"As long as interest rate drops are withheld by the lenders and not passed onto the general public it will not improve market conditions," said Simon Smith, sales manager KFH Bromley.
"Lenders need to relax their criteria and make things more affordable for buyers as it is becoming increasingly difficult for buyers to get mortgages."
Chris O'Toole