Property Price Falls Decelerate as Demand Heightens
The return of buyers to the property market and a depleting level of stock to meet this demand will help stall price falls, Winkworth predicts.
London, United Kingdom, June 15, 2009 --(PR.com)-- Increased levels of activity this year have bolstered confidence in the housing market, for buyers and also lenders, who are now making more mortgage products available – making it possible for some first time buyers to get on the property ladder at last. Pent-up demand from buyers who have been sitting on the fence has also been fuelling the increase in activity in the property market this year.
Dominic Agace, Managing Director of Winkworth Franchising Ltd says:
‘In this period of Government intervention and low interest rates, there is a great opportunity for those with 20% equity plus to buy and sell prior to any potential interest rate rises next year, and this is driving much of the demand.’
Winkworth reported seeing signs of a recovery at the beginning of this year; recent results from various industry reports are, in fact, five months behind and only highlight what agents have known for some time. Ian Dickson, Franchisee of Winkworth Hammersmith and Shepherds Bush says: ‘The amount of genuine, good enquiries has risen by 50% since the end of last year. This is particularly true of first time buyers (with deposits) who have been around in good numbers – first time buyers are off the endangered species list.
‘Time and time again we come across new evidence of prices stabilising,’ Dickson continues, ‘a recent example is a two bedroom flat that we sold in the peak in July 2007 for £405,000. The same property came onto the market this month and an offer was made of £390,000 – only a 4% reduction from the peak price.’
Property Prices in Prime Locations Already Recovered
Prime locations are faring even better; research conducted by Winkworth shows that, on average, prime central London three bedroom houses actually increased in value by 0.04% between September 2008 and June 2009. Compared to industry reports which suggest that, on average, UK prices were -3% in April 2009. Dominic Agace says: ‘Properties in prime locations, i.e. favored streets in particular areas, may experience price growth this year. In these cases competition, driven by buyers looking to take advantage of property discounts and low interest rates, will push prices up due to a lack of alternative suitable properties - without price growth properties are being held back from the market.’
These green shoots could signal the start of the road to recovery for the housing market; however Winkworth believes that they should be viewed with caution. Although there will be greater activity levels in 2009, equating to an average of 10 to 15% more transactions than in 2008, the ongoing cost and restriction of personal and commercial finance, combined with unemployment figures, will restrict price growth in 2009, except for properties in prime locations which will remain an exception to the norm.
Contact Information:
For further information or to speak directly with a Winkworth spokesperson, please contact Maddy Farrow or Amber Rampley in the Winkworth Press Office on: 020 8576 5599
Author/source: Maddy Farrow
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Dominic Agace, Managing Director of Winkworth Franchising Ltd says:
‘In this period of Government intervention and low interest rates, there is a great opportunity for those with 20% equity plus to buy and sell prior to any potential interest rate rises next year, and this is driving much of the demand.’
Winkworth reported seeing signs of a recovery at the beginning of this year; recent results from various industry reports are, in fact, five months behind and only highlight what agents have known for some time. Ian Dickson, Franchisee of Winkworth Hammersmith and Shepherds Bush says: ‘The amount of genuine, good enquiries has risen by 50% since the end of last year. This is particularly true of first time buyers (with deposits) who have been around in good numbers – first time buyers are off the endangered species list.
‘Time and time again we come across new evidence of prices stabilising,’ Dickson continues, ‘a recent example is a two bedroom flat that we sold in the peak in July 2007 for £405,000. The same property came onto the market this month and an offer was made of £390,000 – only a 4% reduction from the peak price.’
Property Prices in Prime Locations Already Recovered
Prime locations are faring even better; research conducted by Winkworth shows that, on average, prime central London three bedroom houses actually increased in value by 0.04% between September 2008 and June 2009. Compared to industry reports which suggest that, on average, UK prices were -3% in April 2009. Dominic Agace says: ‘Properties in prime locations, i.e. favored streets in particular areas, may experience price growth this year. In these cases competition, driven by buyers looking to take advantage of property discounts and low interest rates, will push prices up due to a lack of alternative suitable properties - without price growth properties are being held back from the market.’
These green shoots could signal the start of the road to recovery for the housing market; however Winkworth believes that they should be viewed with caution. Although there will be greater activity levels in 2009, equating to an average of 10 to 15% more transactions than in 2008, the ongoing cost and restriction of personal and commercial finance, combined with unemployment figures, will restrict price growth in 2009, except for properties in prime locations which will remain an exception to the norm.
Contact Information:
For further information or to speak directly with a Winkworth spokesperson, please contact Maddy Farrow or Amber Rampley in the Winkworth Press Office on: 020 8576 5599
Author/source: Maddy Farrow
###
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Winkworth
Maddy Farrow
020 8576 5599
http://www.winkworth.co.uk/
Maddy Farrow
020 8576 5599
http://www.winkworth.co.uk/
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