Sales
A Tough Climate But a Good Time to Sell
The UK experienced a very diverse property market last year, whereby sales in London and the affluent areas in the South out performed the depressed mainstream market. Our forecasts for 2012 suggest this trend will continue although it will be a tough market given the ongoing
backdrop of gloom in the economy.
In recent weeks the statistics across our network of offices demonstrate that we have healthy demand for sensibly priced property with plenty of new buyers registering and a 12 percent
rise in the number of sales being agreed compared with a year ago. Many prospective sellers have been delaying their moving plans having assumed that the market is depressed.
However, demand is outweighing supply and those who are motivated to move, and are realistic with price expectations, are able to do so.
Lettings
Early Jump in Activity Expected
Following on from the traditional seasonal slowdown in activity towards the end of 2011, we expect the 2012 ‘bounce’ to be stronger than normal. A combination of economic uncertainty, stubbornly high house prices and difficult mortgage terms will prop up rental demand for some time to come.
On the supply side, stock is up around 30 percent over 2011 levels in London and 17 percent across our Country network. However, there remains a shortfall for one and two bedroom properties that will prop up rents in most of our markets. The rate of rental growth will ease this year compared with 2011, but remain at above-inflation levels across most of our markets. It is an excellent time for investors to add these smaller rental properties to their portfolios as they are being let quickly and on attractive rates.
To respond to the strength of the rental market, we continue to add new offices to our network. Recent openings in Muswell Hill, Marlow, Farnham, Bath and Gerrards Cross have already proved to be great contributors to our best in market capability. Keep an eye open for early 2012 openings in Mayfair and Ealing.
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