Top of the market has been reached, says London estate agent
Wed 28 May 2014
Peter Rollings, CEO of estate agents Marsh & Parsons, has said that the top of the market has been reached. Prices have stabilised as the supply of property rose 26% in London since March 2014. In Prime London overall, the number of registered buyers per property has fallen from 24 in January 2014, to 16 at the start of June. Quarterly house price growth in Prime Central London has slowed to 2.1% - half the 4.0% increase witnessed in Q1 2014. In the last month, there has been very little change in property prices, as growth stalls.
Peter Rollings, CEO of Marsh & Parsons, comments: "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 'seller's market'.
This renaissance of supply is offering buyers more choice than they've 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."