London House buyer enquiries decline.

January 16, 2015

A recent report out by The Royal Institute of Chartered Surveyors highlights a decline in the number of new buyer enquiries in December as compared to November last year, Estate Agents expect this weakening of demand in the capital to lead to a drop in house prices of around 5% average during 2015. Many would see this drop as entirely predictable, acknowledging that government policy is now filtering through, gone are the days of high multiple borrowing, with stricter mortgage lending rules now in place, borrowing limits have been set at 4 times income instead of the irresponsible 7-8 times, also add to this new taxes for foreign buyers and CGT for them for the first time.

Realistically we may ask is London a place for wage earmers? as in some parts of the capital  property prices hold no relationship to income whatsover, especially in some of the suburbs, if the buyers are foreign as many reports seem to suggest will we see less of them as we move into this year? The high house price inflation in London can be supported by the fact many properties are bought and put out to rent and in many cases for multiple occupation, more at risk are the highly priced flats and/or appartments which are less likley to be multiple occupied but will depend on income to repay mortgage, or is it that such desirable properties in desirable areas are just the target of the wealthy overseas buyer who tend to use them rarely or leave them vacant all the time, buying simply as an investemnt.

London probably is one of the most desirable capital’s in the world to live or own property in of any type, a strong economy contributes enormously to this along with a reasonably safe multicultural way of life, so the desire by many to be in or close to the capital I feel will not be declining in the medium to longer term, however we will probably see a little stagnation in the run up to the election, the outcome of which will be anyones guess at the moment.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Rental price and average salary tracker – October 2026

Rental prices rise across most regions as affordability pressures persist Average monthly rents increased in eight of the 11 regions between September and October, with Wales recording the largest rise at 31.1%, followed by the North East at 29.8% and the South West at 7.5%. Scotland, London and the North West were the only regions…
Read More →
Letting Agent Talk

Portfolio landlords have outgrown traditional property management

By Adam Hills, Client Services Director, LRG Living Markets The residential lettings industry still manages many large portfolios as though they’re simply collections of individual tenancies. While that works on small portfolios, but it doesn’t work when landlords own 50, 100 or 200 properties. At that point, the challenge is no longer property management alone…
Read More →
Breaking News

Real-life value of the most famous Christmas film homes

The real-life value of the most famous Christmas film homes, from budget classics to multimillion-pound mansions New research has gathered and analysed the estimated valuations of real homes featured in popular Christmas films, ranking them by cost. The priciest homes are featured in The Holiday, Trading Places, and Home Alone, with Amanda’s home from The…
Read More →
Estate Agent Talk

77% of buyers refuse to buy a flood risk property

Despite 4.7 million English homes facing flood risk New research from Lyons Bowe has revealed that 77% of homebuyers would not consider purchasing a property in a flood risk area, despite more than 4.7 million homes across England currently being deemed at risk of flooding. The findings come as the Government launches a new flood taskforce amid…
Read More →
Letting Agent Talk

Poor Communication becomes Expensive at Scale

The hidden cost of fragmented property management By Adam Hills, Client Services Director, LRG Living Markets A landlord asks for an update on a repair. The property manager asks the contractor, who is waiting for access from the tenant. Meanwhile, the accounts team has received an invoice but cannot tell whether the work is complete.…
Read More →
Estate Agents should not all look the same
Estate Agent Talk

When Estate Agents Decide to Go Solo

Leaving an established estate agency to work independently gives experienced agents more control over fees, client service and working hours. It also brings responsibility for compliance, cash flow and every part of the customer experience. Before handing in your notice, test the idea against realistic sales volumes, local competition and the amount of time you…
Read More →