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London Housing Market 2017


London Housing Market 2017

London Housing Market 2017

The London housing market 2017 has been steady with a slight rise of 5% predicted, London will not be the driving force for the UKs housing market growth like the previous 10 years.

Prime central London property is expected to see prices fall during the year or at best see prices stay static. The price fall could be as much as 6% according to economic forecasters. We advise vendors in central London that are wanting to sell their property quickly to adjust their prices to be competitive in this crowded market.

Economists have also predicted for the next five years that house price growth of 4% each year for the next five years, resulting in a total growth of 23%. The forecast for central London is at best flat for 2017-2018, then they are predicting a much stronger growth of 8% for the next 3 years which bring the cumulative growth to a much healthier 26%. In turn, if you can afford to hold on to your property for the five-year you are getting a healthy growth then sell house fast London after the five years.

They have also predicted a worst case scenario which could see Londons central property market fall by 5% in 2017-2018 then pick up to 4% growth over the next 3 years which sees total growth of just 2%.

The rental market in central London has been forecasted to be flat in 2017, then rise in 2018 by 2.6%  then rise by 4% over the next three years, so your investment will have generated growth of 15% by 2021.

The question on everyones lips is what has 2017 got in store for the London property market with the upcoming global events, with potential rising interest rate, shortage of housing stock and rising inflation, according to Scott Mcardle our very own analyst here at Home House Buyers. He expects that with demand still very high and with stock levels still very low this should keep the London market stable and the UK northern market buoyant with a healthy rise of around 7-8%.

According to the National House Price Index property grew 4.5% during 2016 overall, usually, London is the catalyst of the UK housing market which drives the prices upward but all changed in 2016. London only grew by 3.7% over 2016, the region was outperformed by 12 other areas of the UK which has been unheard of in recent times. East Anglia has been the most notable performing area with a price growth of 10.1 %, whilst the growth in London dipped below the UK average in 2016 for the fist time in 9 years. Vendors aren’t taking heed of this with London properties sticking on the market for as long as 11 months it’s a difficult time for the sell house fast London property market.

“Whilst the Brexit hangover still exists in the capital it’s still full steam ahead. The high demand and lack of supply will keep driving prices upwards, though not as we have come to expect they will only be slight rises maybe 3-4% and not the 9-12% rises we have previously seen. Vendors do have to price competitively to achieve that quick house sale” said Scott Mcardle of Home House Buyers.

The pattern of sales had been very similar, with volumes in the £2m plus property market being very slow and steady compared with previous, figure from 2015 these vendors are struggling to sell houses fast and having to reduce the price drastically to achieve that quick house sale. The South East has seen sales rocket as vendors across the region are enjoying selling their properties fast with over 600 sold in 2016 according to RightMove.

In the prime central Londons property market sales were down nearly 25% compared to the previous year. Final two-quarters of 2016 the transactions level did rise but still significantly down on 2015 and are considerably below the five year average with vendors finding it tough going with property prices being reduced to achieve a quick house sale.

With more scenarios of sellers looking at pricing their properties reasonable and considering offers in the central London market, this may have found a level which should boost activity in the area and Strutt and Parker data for the end of 2016 showed a small uplift of 4% in British buyers in the sector when compared to the same period last year.

All reports point towards the current economic climate and with the extra 3% stamp duty on anyone buying a second home which came into effect in April 2016 which is having an impact on the lettings and sales market in prime central London. Lets were down 31% in 2016 compared to 2015 which is a massive dip in agreed lets.

“The lack of new lets in central London reflect the market uncertainty in the market following the referendum in June. The tenants on our books and having a look at their profiles over 40% of our tenants are from the EU and these tenants are simply renewing tenancy and staying put to see how Brexit unfolds, all are on tender hooks as they don’t know what their position is.” According to Chris Wilson head of lettings at Home House Buyers.

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