Stirling Ackroyd Comment on Q4 of 2012, and the condition of the London Property Market

Top Quote The London estate agents Stirling Ackroyd comment on the condition of the London property market at the end of Q4 2012. End Quote
  • (1888PressRelease) March 28, 2013 - It was an encouraging end to the financial year with Q4 seeing the average UK house price rise by 0.5%. It was especially good news for London agents Stirling Ackroyd, as regional variations saw London property prices come up trumps, increasing above the national average.

    With the 4th quarter drawing to a close, Stirling Ackroyd assess the current state of the property market in London:

    Throughout Q4 we have seen high demand for sales stock, but a continued shortage of supply, now at its lowest in five years. This is in part due to the growing popularity of the capital, with fewer people relocating to outside of London than we've witnessed previously. Q4 continued to see strong interest from foreign investors, with a significant percentage of property purchased in central London coming from outside of the UK.

    A surge of foreign investment in London property has been a continued trend of the recession, as given the instability of the Eurozone, the city's property market is considered a haven for wealthy Europeans to convert their euros into a safe investment. Inevitably this high demand and low supply has seen higher housing costs across the London sales market.

    A further consequence of the current economic climate is that attaining a mortgage remains largely inaccessible for first time buyers. This has seen demand for the housing market in the UK shift towards renting, and Q4 saw strong London lettings activity and an increasing number of 20-34 year olds in London looking for rental property. Although supply of letting properties hasn't shrunk to quite the same levels as the sales market, there is still a shortage of stock combined with this increased demand, meaning that rents have predictably been pushed up.

    When speaking of the London property market throughout the final quarter of 2012, Alexander Jones, Lettings Director from Stirling Ackroyd stated:
    "In the last quarter of 2012, London has continued to be a safe bet for landlords and vendors alike, as it remains a popular destination for everyone from city professionals to international students. The demand for properties in areas such as Bloomsbury and Hackney has seen a significant increase on the previous year, due to close proximity to work or university. With price increases achieved consistently above the national average throughout the recession, it is easy to see why London property remains such an attractive prospect to investors from the UK and abroad."

    For more information, contact Stirling Ackroyd on 020 7749 3838.

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