Rising UK Property Prices Seen in the Last 8 Months
Tuesday, November 7, 2017
Properties in the UK has steadily risen over the past 8 months according to Britain’s mortgage lenders. See full story here.Read more
London residential prices are now firmly on the rise after languishing for four years.
Halifax “UK house prices jumped 4.1% in January”.
Jamie Durham, a PWC economist “Price growth in London in particular has rebounded”.
Wherever you look it has become obvious that we are now entering a bull market and this trend is likely to continue over the next few years due to the acute shortage of London residential stock and a rapidly increasing confidence and demand.
In the secondary market we are now seeing the return of gazumping, where offers are accepted and then someone else comes in with more cash and takes the property away from the buyer. Agents are inundated with viewings and competing offers for property have quickly become the norm.
Dylan James, director at Chestertons stated “Gazumping is starting again. We had a three-bedroom apartment on Hyde Park Square with an agreed offer at the full asking price of £2 million …. A new buyer offered £100,000 over the asking price and exchanged contracts”.
The anecdotal stories abound with Mary Beeton of Hamptons indicating that a North Dulwich property, offered at over £1M was viewed 68 times resulting in 20 offers.
For buyers the secondary market is becoming a minefield and it now makes a lot more sense to look at the “new build” market where prices still remain stable and buyers can exchange legal contracts quickly.
Target areas such as Central Canary and the West of London are now in particular demand and fortunately there are still a number of “new build” – off plan projects that are well worth looking at. However this market window on “new build” will not remain there for long. Four years of dismal markets due to Brexit caused developers to stop building and the pressure of secondary market sales will quickly move into the “new build” sector.
So the advice now is to exchange contracts quickly once you find a flat/project that suits you. In a few week’s time it might not be there.
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