Recent statistics reveal that house prices in London saw a modest upturn in May
The average price for a home was up 0.3% last month, equating to an increase of £3,500, research from primelocation showed. Year on year sales are down slightly from May 2008, down 2.4%. London prices remain relatively high, as demand is still great in the country’s capital, regardless of the lack of available credit. Once the banks’ credit lines have been relaxed and credit becomes available again to borrowers, expect to see the floodgates opening up and prices shooting upwards. Many expect the beginning of 2010 to be a very distinct turning point.
Many now see the last 6 months of increasing prices as an turn in the market, and the beginning of a gradual upturn. Prices in the capital remain high compared to almost all other cities in the U.K., which remain downbeat after the recent real estate downturn. During the peak of the market bubble, most U.K. cities enjoyed extrordinary pricing valuations. London and Edinburgh are two of the few cities which still remain out of reach for most first time buyers, with demand for new homes still strong.
Home Sales Demand
There has been reports for muc stronger demand in the lower end of the market in London, as low interest rates and increasing yields on cheaper housing becomes apparent. In certain areas of in-demand central london, sellers may even have the upper hand.
Cash rich investors are expected to make a return to the market, as many feel that the market may have bottoms out, with many investors unwilling to miss out on the returning London market. Prices have taken only a very slight dip in recent months.
The top-end of the market has seen some very modest decreases in value, but the mega-rich have been far from the poverty line. Most have simply sat on the sidelines, watching the inevitable unfold - and many are now in a better postion than before the crash. Whilst the first time buyer remains very much out of the loop in the london market, bargains abound for the well off. With many amatuer landlords crumbling under the mistakes they had made during the boom years, more experienced landlords are now moving in to pick up the housing sale bargains. Top end rental properties have increased their value by 115% this year, as the well-healed remain unfazed by the recent crash.
House Price Expense
First time buyers are still in a most unenviable position, where a 2 bed flat in central London will cost anything around the £300,000 mark. This effectively means that a young couple looking to buy in the capital would require a healthy £75,000 income between them. On top of a deposit upwards of £10,000. Oh, and dont forget stamp duty of around £8,000, and any other expenses you care to think of. London, depsite recentdecreases in property prices, is still a pricey place to settle down.
Rental values for mid range properties in London remain down for the 14 consecutive month, recent studies reveal. To search local rental values in your town, click here: http://www.sell-my-house-quick.com/search/index/minrental/1