News Column


June 20, 2014


MAY has been a month of momentum. Increasing numbers of homeowners convinced that the market is reaching its zenith are selling up, meaning more valuations are converting to instructions.

Contrary to the reports made by some commentators that the market has cooled, Emerging Prime is still busy; new applicant registrations were up on last month and stock levels remained steady at the same level as this time last year.

We continue to receive a high number of offers, although some buyers are trying at lower figures than earlier this year. Sealed bids are becoming less frequent as buyers are taking advantage of the increased choice that has been presented within the last 18 months.

Interestingly, we feel that despite a plateauing of prices, unleveraged central London buyers who've forced prices up in emerging prime locations are unlikely to sell this time if interest rates go up. I believe this implies that recent strong rises in these areas are here to stay, creating a re-rating, rather than a bubble.

Previous peaks have been driven by leveraged City buyers who retreated and created a mark to market lowering of prices. These new buyers, many of them foreign, have been buying with cash.

It is very much my hope that levers and implications of action from the Bank of England don't stymie what is, for most of the UK, a brittle recovery.

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Source: City A.M. (UK)

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