Real Estate News | Residential Real Estate
London's Housing Market Still Flat in October, Rental Market Exploding
By Michael Gerrity | November 10, 2010 8:23 AM ET
According to the London Property Barometer, a monthly report produced by London-based Douglas & Gordon, the home sales market is still slow despite predictions of coming market upturns.
Ivor Dickinson, Managing Director of Douglas & Gordon said, "The Christmas lull has come early for the London sales market with October seeing the lowest number of new valuations this year. Vendors have been encouraged by reports that prices in London will increase over the next couple of years, so are waiting for the market to pick up."
Dickinson further commented, "For those properties already on the market, buyers have been bidding at asking prices, but again, vendors are pulling out of the sale at the last minute thinking they'll get a better price next year. Less than 40% of the offers received in October were actually agreed."
"We're advising vendors to market their property now to get two bites at the market, one now when there is little competition from other properties and if necessary, again in the New Year when there will be more buyers but also more competition" stated Dickinson.
While the housing sales market is treading water, the rental market in London is benefiting from the market downturn.
Ivor Dickinson, Managing Director of Douglas & Gordon says: "Those who can't afford to buy a property in London continue to be forced into rented accommodation; but supply is still at worryingly low levels with four people fighting for every one property available. Tenants have to be the first through the door and willing to pay the price for it if they don't want to lose out."
Dickinson further commented, "Disheartened vendors who've failed to sell at the right price continue to be one of the biggest sources of rental stock in London. And we are seeing more buy to let investors entering the market who are encouraged by increasing rents. A significant majority of existing tenancies renewed at an average increase in rent of 6.4% in October, compared to 5% last month."