UK Property Market Review 2011
With London prices and demand for quality properties continuing to outperform the provinces, the country house market has continued to struggle to keep pace.
- Country House prices continue to fall towards the end of 2011
- Country House prices between £2.5m and £4.5m continue to take the biggest ‘hit’ in price adjustments in the 12 months to the end of 2011.
- Prices of properties worth more than £5 million are still rising with continued demand from buyers.
- Overall prices are reported to be 3% higher than the post credit-crunch low in June 2009
- The southern Home Counties market has been the most resilient, down 1% on the year, compared to a reported 10% decline in the North West
- The number of buyers seeking to acquire their ideal property continues to rise despite the lethargic and apathetic market
- Despite the increase in the need for houses, their continues to be a shortage of supply of good quality houses, particularly in the Country House market reported by all selling agents
But Why?
The London property market is currently and will continue to be reliant on International buyers looking to spend or invest in what they consider to be a ‘safe haven’ for their Euros and Dollars. The international buyers have proved to have much less influence and impact in the Country house sector as nearly 65% of buyers buying Country Houses are British compared to about 40% in London.It is not anticipated that the international buyer will be tempted or influenced to look at areas such as Surrey or Berkshire, they will for the foreseeable future continue to buy in London in the key popular areas including Mayfair, Belgravia, Knightsbridge and Kensington.
Outlook
We are always intrigued to identify who and where the demand for houses is coming from. Our less than optimistic forecast for any significant change is based on an assumption that the wider UK market and economy will see more troubled times. There is a strong probability that European political financial and economic issues will continue to encourage buyers into the UK, especially at the top end of the market and to properties in the Capital.With Russian, Chinese and areas in the Arab states all with their own political issues and uncertainties, buyers who can extract their wealth from their respective countries will continue to make investments outside of their home region.
However, if the strength of the Pound starts to improve the demand from the international buyer will surely have an impact on the current levels of demand?
As we start 2012 the indecision and uncertainty surrounding the future of the Euro remains a critical factor. Whilst there is speculation that the return of individual national currencies could become reality, it is considered that the failure of the Euro as the main currency in the near future would have catastrophic consequences. Both France and Germany cannot allow this to become a realistic option.
The UK property market is likely to be influenced on matters such as:
- Taxation, abolishing the 50% income tax rate
- The likelihood of a proposed new property tax
- The ability of London/City based companies to have the confidence to start creating new jobs particularly in the Financial Sector
- Job stability and confidence of job security
Ready to Talk?
If so we are always happy to hear from you and Contact Us to discover how you could benefit from our services. Alternatively you may have some questions, again feel free to email or call but you could watch our video to see if the answer is there. Finally if you want to see the kind of work we have done or know more about Premier Property Search and what makes us the right service for you, Then take a read of our About Us section.
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