The clocks have gone back, Halloween has been and gone and the firework displays have taken place. The world famous Christmas lights are twinkling in Oxford Street and the mince pies are in the supermarkets which can only mean one thing; the festive season is fast approaching.
What the media had to report about the London property market during November
The recent strong performance of the housing market is beginning to steady and level out. The Nationwide House Price Index saw considerably weaker growth in Q3 compared to the previous quarter. Greater London continues to perform well on all measures as average prices reach £548,040, 10.7% higher than last year.
Recent interventions aimed at curbing the housing market appear to have had little impact so far as initial statistics on lending rates, transaction levels and prices do not suggest a significant slowdown.
The shortage of housing is now emerging as one of the single biggest issues facing London and how we tackle that will define the future success of the Capital. Complex questions of where, what, how and who all have to be addressed and resolved.
When will interest rates increase?
Due to recent poor economic data and the unexpected fall in inflation; interest rates are now not expected to rise until mid-2015 at the earliest, after the General Election.
Once they begin to rise this may have a dampening effect, most specifically in the mainstream markets where the majority of purchases are dependent upon mortgages.
More supply and political uncertainty create better buying conditions
Uncertainty of any kind tends to deter buyers and make sellers, who don’t need to sell, hold off until activity picks up in the weeks and months following the UK vote.
This has traditionally been the way and it looks like history will likely repeat itself this time around. It also means that anyone holding off until May will almost certainly end up paying more for the property they end up purchasing. There will be far more buyers post-election and sellers will have the run of things in a way that they don’t have right now.
If the Conservatives stay in power there will be no threat of a Mansion tax, therefore we believe the market will very quickly return to normal.
Buyers can use the slower market and a general feeling of caution to their advantage by driving a harder bargain.
New pension rules
The pension world is about to change radically in April 2015; and a huge wall of money is predicted to hit the property market, whether owner-occupied or rental property. Already one in three people is opting for a property nest egg as opposed to a conventional pension, and the new changes mean that the property pension pot is likely to soar in popularity. Many landlords will then be able to use their pension to repay their mortgages, refurbish their properties, and buy more property. Or, this may well mean the entire property market is under-pinned by a new injection of investment that means property makes even more sense as an investment.
Interesting times are ahead for property investors who are able to spot a game-changing opportunity!
The London property market
The future remains very positive for the London property market with strong key growth drivers and the confidence of both domestic homebuyers and overseas investors.
One thing that is clear in a market that is in a period of adjustment, is the need for home sellers to use the services of a good quality, full service estate agency who combines both online and offline marketing with the knowledge and experience of an established professional team, who understand the local market and what is happening in the market place.
Here at Ellis & Co we pride ourselves on the personal and knowledgeable service we deliver to our clients. If you are considering buying a home or investment in or around Golders Green, please do get in touch.