London Barometer
George Franks
SALES DIRECTOR, DOUGLAS & GORDON
New business was up over 100 per cent from August to October, demonstrating that politics hasn’t completely stymied the market. Applicants increased by 10 per cent while offers received increased by almost 30 per cent, indicating that buyers will commit to a purchase if they feel the price is right. Many purchasers are trying to leverage pre-election uncertainty to chip away at prices, but vendors are standing firm against bold offers, creating something of a stalemate.
The number of properties available is at a 36 month high. Earlier this year, buyers were restricted by lack of availability, but are now able to secure their preferred property and, with average transaction times up to 16 weeks, the pressure to offer has been alleviated.
October saw new applicant registrations up 40 per cent compared with the same month last year, with activity South of the river storming ahead of Prime Central London. The number of properties on the market to rent was down 33 per cent.
Although in October we valued 31 per cent fewer properties (potential new rental instructions), the number of actual new instructions was in fact only 16 per cent lower than in October last year.
With the growth of the private rented sector set to continue, we expect to see the average time spent by tenants in rented accommodation increasing as well as rents continuing to move upwards as demand grows.