London Property Barometer
Report: London Property Barometer
By WPC Staff
The London residential property market ended 2013 on a good note, with more sellers and buyers, according a new report from London-based real estate firm Douglas & Gordon.
The Barometer shows 50 percent more properties came on the market in December, while 20 percent more buyers entered as well.
December was busier than usual, as expected, with price gains in London, the report states. Looking ahead, the firm expects the same activity this year.
"Based on the latter part of 2013 all the signs point to another year of price rises in D&G land with even more pent up demand and the main core of activity taking place in 'Emerging Prime'- areas just outside Prime Central London," Ed Mead, D&G executive director, said in the report. "We are anticipating another year of price growth in 2014 ranging from five percent to seven percent."
The report highlights shifting dynamics in the leasing market for London.
Approximately 10 percent of landlords decided to benefit from the sales market and decided to sell when their properties became vacant in December. On the other hand, 10 percent of tenants decided to buy homes when their tenancies expired in December.
The firm forecast a good year ahead for the leasing market.
"In December we registered 20 percent more tenants than the same time last year, whereas stock levels decreased by 20% year on year and were at the lowest level seen for over 12 months," Virginia Skilbeck, D&G lettings director, said in the report. "With the rental market inextricably linked to the performance of the London economy, we are predicting only nominal rental growth of 1 percent or 2 percent for 2014."