What goes up must come down? Photo: Martie1Swart
The agency’s latest London property Monitor shows that price growth has slowed down in the capital. Values have climbed 11.4 per cent in the past 12 months, the equivalent of a £163,973 rise, but that rate of increase has dropped sharply to just 0.5 per cent over the course of the third quarter of 2014, far lower than 3.1 per cent recorded in the second quarter. Values are now expected to flatten until the end of 2014.
House price rises have been steadied by a rising supply of Prime London property on the market. Stock has increased 13 per cenet in the past three months, which has cooled the level of competition in the market; the number of registered buyers per available property in Prime London has fallen from 24 at the start of 2014 to 12 in September.
Peter Rollings, CEO of Marsh & Parsons, comments: “We’ve reached a plateau in the course of house price growth, and the path paved out for London property prices for the rest of 2014 looks to be levelling off. This isn’t terminal, but just a necessary pitstop in the long-term growth and sustainability of the market. And it doesn’t mean we’re in for a quiet winter either. Sales will continue, albeit at a more ‘normal’ level, as buyers revel in the greater choice on offer, and without the frenetic competition many faced at the start of the year. With more realistic pricing sellers are prospering too, and on average 98% of the asking price is currently being achieved on properties sold.
Growth is expected to resume next year, though, says Rollings, despite caution surrounding the looming election: “In the hubbub surrounding the property market recently, seasonal patterns have been lost in translation. The majority of house price growth typically falls in the first half of the year, so this autumnal re-calibration is nothing new. Price growth may have paused to catch its breath, but come January we expect the heartbeat of the property market to quicken again as growth awakens for another healthy year.”
Source: The Movechannel