Press Release: Supply of homes for sale rises 28% in boost to London market
Tuesday, 24 August 2010
The number of properties coming onto the market for sale in central London has risen by 28% in the past six months, a healthy development for the market, according to estate agent Marsh & Parsons. At the same time, buyer demand has remained strong and stable – and registered applicants have risen since March – which is a good indication that activity in the London property market is likely to rise in the coming months.
Peter Rollings, Managing Director of Marsh & Parsons, said: "The rise in supply of homes for sale is a healthy development for the London property market. Last year, we saw galloping house prices in the capital, underpinned by a severe shortage of properties on the market. Buyer demand is still as strong, but there is now a greater balance between supply and demand for properties and this will encourage more activity in the housing market and see house prices rise at a more sustainable pace."
The ratio of registered buyers to properties being put up for sale has dropped from 14.2 in March 2010 to 11.2 in August, which points to a healthier balance between supply and demand.
From spring 2009, the shortage of properties for sale in London led to a sharp increase in prices, greatly outpacing the rest of the UK. Between May 2009 and June 2010, average London house prices rose 14%, from £296,418 to £338,027.* House price growth was even steeper in certain areas of the capital, such as Kensington & Chelsea where average prices are now 24% higher than at the low point of 2009. By contrast, prices increased just 8.8% nationally – to £166,072. The rise in properties for sale should now lead to house prices growing at a more measured rate.
Increased activity would be good news for the London property market. The property market revival has been stronger in the capital than in other parts of the country, but more transactions would be a welcome boost for the continuing recovery. In April 2010, there were 6,532 property sales in London. This is considerably higher than the 3,117 sales at the February 2009 low point (a 110% increase), but still well below the 16,140 transactions recorded at the height of the market in August 2007.
* Land Registry Data
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For further information please contact: The Wriglesworth Consultancy Tom Urpeth / James Staunton 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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