Last month we discussed the possibility of an upturn in the property market and so far, this is proving to be the case with a surge of confident London homeowners upping their asking prices in response to heightened demand from buyers. Additional factors such as low mortgage rates and increased political stability also seem to be contributing to this upward trajectory.
The latest figures from Rightmove reveal that asking prices in London are up by 2.4% in February compared to the same period last year, pushing the average price up to £629,000. Notably, for the first time in sixteen months, there was an increase in the number of people putting their property up for sale, with a 1.6% increase compared to 12 months ago.
Indeed, industry commentators have argued that this spring could present the best-selling prospects for many years with a good balance between the right properties being available for the right prices. Furthermore, momentum is likely to build in the coming months which would certainly be a welcome development after over 3 years of Brexit uncertainty.
While the property upturn is undoubtedly a significant boost at the right time, industry insiders have warned against getting carried away as house prices could stagnate again towards the end of the year.
As we approach Brexit, trade negotiations will inevitably affect the market and the prospect of “Deal or No Deal” will play its role so a cautious approach is still advised in the short term.
For example, sellers should consider the implications of their pricing as we are still operating in a price-sensitive market which is intrinsically linked to buyer affordability. Those who overprice in the market run the risk of missing out on the window of increased activity that we are currently experiencing.
It has been reported that all but 5 London boroughs enjoyed a slight increase in house prices year-on-year and of the 5 highest rising boroughs, 4 were in the South of London, with areas such as Lambeth boasting impressive growth of 7.7% to £648,000. Other areas such as Kingston upon Thames, Merton & Sutton all experienced rises of 4-7%.
Additionally, asking prices in Chelsea & Kensington rose to £1,567,000 which was an increase of 3% on the previous year. While all of these rises are significant, it will be interesting to see if momentum is maintained into the second half of the year.
Now is a good time to make a move in the property market so if you’re considering a purchase of your own then we can help secure you the lowest rates in the marketplace. If you wish to enquire please feel free to email info@specialistmortgages.uk.com or give us a bell on 0345 873 1234.