Press Release: Reluctant Landlords Retire
Tue 13 Oct 2009
For the first time in two years, London agent Marsh & Parsons has recorded an upturn in the number of lettings properties being sold off by their owners. Since the end of July, Marsh & Parsons has witnessed a 36% fall off of properties on the lettings market. And as a result of Londons letting stock shrinking so rapidly, the price of rentals is recovering - up by 8% in the last three months.
Peter Rollings, managing director, said: "People who were trapped with properties that had dropped in value by as much as 20% were forced into becoming reluctant landlords. These people have suddenly started putting their properties up for sale as prices have risen. House prices in Kensington & Chelsea rose by 2.7% between July and August alone. In Westminster, prices rose by 9.3% between April and August which is the equivalent of and annual increase of 31%. We estimate that in some cases, where demand is vastly outstripping supply, values have returned to those of the property peak in 2007. As the rental stock has started to dwindle, rents have firmed."INDEX OF MARSH & PARSONS LETTING STOCK
As reluctant landlords have started taking their properties off the rental market and selling them, Marsh & Parsons has seen the number of instructions to sell that it receives increase dramatically. Between August and September sales instructions increased by 31%. This is not a seasonal change instructions would normally fall by 15% over the same period.
INDEX OF MARSH & PARSONS SALES INSTRUCTIONS OVER 2009
Peter Rollings said, "What does this mean? No one can say if this is a sustainable situation but there is a return to some sort of normality. October has certainly started very strongly. The market for one and two bedroom flats is booming - good quality examples are being heavily viewed within their first 48 hours on the market and many are going for asking price or more. We dont want to see a galloping housing market because thats no good for anyone. I would just say that the bargains for buyers are getting thinner on the ground and I can not see house prices - or rents for that matter - getting any cheaper going into 2010."
For further information please contact:
The Wriglesworth Consultancy, James Staunton 0207 427 1404
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.