Once again the UK property market finds itself under the scrutiny of the government and media with much talk of a boom or indeed a bubble. It’s certainly true that the market has gone crazy this year. Prices being achieved in prime west London are now 40% and, in some cases 50%, higher than the ‘peak prices’ of 2007.
Many people are being priced out of the traditional hotspots of Notting Hill and Kensington, meaning the adjacent areas like Bayswater and North Kensington are becoming ‘boom zones’ with demand for property rocketing and extensive redevelopment occurring.
There is no such thing as a ‘typical’ buyer; we’ve had many British buyers this year alongside those from Asia, Europe and the Middle East. What they mostly have in common is that they have been cash buyers with no bank leverage at all. There has been activity at every level of the market, but the bracket between £500,000 and £2million has been the most energised, most likely driven by the new stamp duty regime.
From this month, The Help to Buy Mortgage Guarantee has been made available to buyers of both new build and older properties up to £600,000 in value. We can only speculate about how this will affect an already feverish market. One thing is for sure, there has never been a better time to sell. I personally don’t believe the London market is about to burst. What happens in the Eurozone will certainly have an impact but the bricks and mortar in this global city remain a very attractive investment.
Director – Head of Sales, Mountgrange Heritage
Posted: 9 October 2013