Press Release: 2009 Housing Market Prospects Brighter
NEW BUYER REGISTRATIONS ALREADY HIGHER AS HOUSE PRICE FALLS SLOW
The worst is over for house prices in London, according to London estate agent, Marsh & Parsons. In Central and West London, prices have fallen by up to 25% over the past twelve months. Marsh & Parsons expect prices to continue to slip in the first half of 2009, though the rate will be considerably slower. They are predicting a peak to trough fall in house prices of 30% in the capital – prices have already dropped significantly and buyers are already back in the market.
Managing director of Marsh & Parsons, Peter Rollings, said: “London was first in to the down turn and it will lead the way out. We’ve already seen the worst of the credit crunch impact on London’s property market – it’s not going to recover immediately, but I’m confident we’re near the floor – each week sees more buyers back in the market. In order to stoke recovery, the government must work with lenders to make mortgages available to buyers. We know there are people out there who want to purchase their first home, or move house – but the lack of mortgage finance is still debilitating.”
The deteriorating health of the market at the end of 2007 encouraged large numbers of people to rent rather than buy while the market stabilised. Tenants registering with Marsh & Parsons were up over 50% in the first 9 months of 2008 compared with 2007. But those who rented in 2008 will come to the end of their one year tenancy in the early months of 2009. For people wishing to invest in a home or a ‘buy to let’ for the mid to long term, the 2009 market presents a rare opportunity to buy at, or very near, the bottom – maximising potential capital growth.
Peter Rollings said, “We’re already seeing the number of buyer registrations rise – they’re up by over 30% in the last month as intermittent renters think about re-entering the market. I’m expecting to see a large influx of potential buyers in the first half of 2009 which will help to balance the supply/demand equation – in turn stabilising property prices.”
The London estate agent is expecting the volume of homes changing hands to improve next year. As the government’s bail out package begins to filter through, liquidity should start to reappear in the housing and mortgage markets. Although lending criteria will be far stricter than at the height of 2007, mortgages should be more plentiful.
Peter Rollings continued, “Mortgage rates are starting to drop and the price of money looks set to fall still further, tempting people back into the market for the first time as buying becomes substantially cheaper than renting. Together with the lowest house prices in years, there are some fantastic opportunities to get a step onto or up the property ladder. “
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For further information please contact:
The Wriglesworth Consultancy
James Staunton / Sarah Davidson
0207 427 1400
Marsh
& Parsons has been part of the London property scene since 1856.
The sales and lettings agent has 14 offices situated in prime positions
across central, west and south London. They have an intimate and
extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.
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