Estate agent calls London boom
Wed 28 May 2014
Estate agent Marsh and Parsons has called the top of the London market following a sharp rise in the supply of available property which has caused the number of buyers chasing each house to fall. Prices have now stabilised following a 26% surge since March this year, the agent said, with quarterly house price growth in prime central London dropping to 2.1% from the 4% seen in Q1. Marsh and Parsons chief executive Peter Rollings said the market had begun to change as buyer numbers per property fell from 24 to 16. "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 reached a plateau as more property has come onto the market; however demand continues to outweigh supply, in what is still a sellers market." And he warned the Bank of England against taking unnecessary intervention. "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."