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

First-Time Buyers Prioritising ‘Forever Homes’

A third of first-time buyer purchases are semi-detached properties, as young people turn to ‘forever homes’   Barclays mortgage data shows semi-detached properties rose in popularity in August, accounting for 33.5 per cent of first-time buyer purchases Four in 10 Barclays first-time buyer customers chose mortgages allowing them to complete their repayments over a 30+…
Read More →
Estate Agent Talk

Closing the gap on client relationships and recommendations

New research from iamproperty has highlighted the growing disconnect between what buyers and sellers want from their agent and what they experience, which could be killing recommendations from happy clients. iamproperty’s quarterly consumer survey revealed that only a third of respondents (32%)¹ would recommend their agent following their experience. With many agents relying on recommendations…
Read More →
Estate Agent Talk

Northern Ireland to expect over 25,000 new home movers

Belfast-based estate agency John Minnis has revealed that Northern Ireland is to welcome an estimated 25,000- 30,000 new arrivals from the UK and Europe over the next five years, as migration to the region reaches its highest levels in more than a decade. Recent figures show that 11,700 people relocated from other parts of the…
Read More →
Breaking News

Red tape and rising costs stifling new-build availability across the capital

The latest analysis from London estate agent, Benham and Reeves, has revealed how protracted building timelines are preventing the capital’s housebuilders from delivering the level of new-build housing stock required to meet demand, with new homes currently accounting for just 7.5% of all properties listed for sale across London. Benham and Reeves analysed the latest…
Read More →
Estate Agent Talk

UK’s new wave of ‘second cities’ offers strongest yield growth for property investors

The latest research from West One Loans has found that whilst investors may continue to favour the nation’s key cities such as London, Birmingham, and Manchester, a new wave of ‘second cities’ is delivering the strongest growth in rental yields. These emerging markets are offering investors the chance to achieve attractive returns, driven by rising…
Read More →
Estate Agent Talk

Decline in change of use further constricting housing supply

Jonathan Samuels, CEO of Octane Capital, believes that a decline in conversion projects could ultimately prevent the Government from hitting its ambitious housing delivery targets, as the firm’s latest analysis has revealed that the number of homes created through change of use has fallen sharply in the last five years. Octane Capital analysed official Government…
Read More →