Press response to Halifax's latest House Price Index
Thu 08 May 2014
Peter Rollings, CEO at Marsh & Parsons, comments: "There has been much talk of whether or not theres a bubble in London. Its true that prices rose more rapidly than Ive ever seen in the first three months of this year. Prices rises are slowing now, thank goodness but bubbles by definition, pop, and with the supply/demand ration still out of kilter, I dont see that happening here. At long last, there is more property coming onto the market, but there are still almost 50% fewer properties available than in 2007, so there is still plenty of slack to be taken up.
"Thanks to a greater supply of property coming onto the market, the ratio of buyers per property has shrunk from around 24 buyers per property in January, to around 18 at the end of April. This is partly due to some portfolio and accidental landlords deciding to cash in by selling their properties, following several years of excellent capital growth. This has led to more property being available for sale, but less property for rent. As a result, we may now see rental prices starting to rise."