Estate agent calls top of London Market
Wed 28 May 2014
A London estate agent has called the top of the residential market in the capital. Marsh & Parsons cited the supply of property rising by 25% since March and an overall fall of registered buyers per property from 24 in January to 16 now as its reasoning. It also said that growth in prime central London had slowed to 2.1% for the quarter compared to 4% during the first quarter of 2014. Peter Rollings, chief executive of Marsh & Parsons, said: "In the past six weeks, we have seen the wind change in the property landscape, restoring a new calm and steadiness to the market. Property prices have plateaued as more property has come onto the market; however demand continues to outweigh supply, in what is still a sellers market. This renaissance of supply is offering buyers more choice than theyve enjoyed in recent months and is also good news for sellers searching for their onward purchase. That said, sellers should be prepared to adapt to these cooling conditions. "2014 saw one of the busiest starts to the year, and up against such limited housing stock and fierce competition for available properties, buyers were left with very little breathing space. House price rises may have grabbed the headlines this year but double-digit annual increases are not sustainable, and as the market self-regulates itself, sellers and estate agents need to adjust their price expectations accordingly. "We believe this slowdown in price growth is a healthy and organic development and would urge the government and Bank of England to allow the market to take its natural course. Ramping up interest rates or making mortgages more expensive would be a gross over-reaction, which could harm the wider market outside of the capital, where the story is very different and recovery is only beginning to take shape."