London Property Demand Down, Commuter Belt Up
In the last few months London has seen a significant decline in demand for its properties, according to online estate agentseMoov.co.uk. The most significantly low-performing of the London boroughs were Westminster, Hackney, Tower Hamlets and Newham. In fact Westminster saw a drop of 42% overall, the most significant in the UK. In light of the property bubble that London has enjoyed for the past few years this data shows a relatively new trend, although how long it will continue is uncertain.
One reason for this uncertainty is the upcoming general election: Labour’s promise to introduce the much-debated Mansion Tax would disproportionately affect London’s high-price property market. The relatively recent slow in Russian buyers has also affected demand overall, and with insecurity about oil prices, sanctions, and ongoing conflict along the western border it is impossible to determine when this situation will improve. London’s market, for the moment, is in limbo.
However there has been an upsurge in buyer interest in the commuter belt, particularly areas that may be linked in the Crossrail project. Readings, Sutton, Watford and Guildford have seen some of the largest increases in buyer demand over the recent months, and the house prices are rising to meet it. With London workers increasingly being priced out of the capital by inflated prices, the popularity of properties in the commuter belt is unlikely to wane any time soon.
As of these first few months of 2015 the property market for London seems uncertain and difficult to predict.
Read more at http://www.thelondoneconomic.com/2015/02/10/property-london-hot-not/