The property website Rightmove recently announced that sellers in London are now asking prices of £500,000 on average. In May prices have risen by £15,418 which means that the average asking price of a newly marketed property in London is now a staggering £509,870. The previous high was in March this year but since then the figure has risen by 2.7%.
Rightmove describe the London property market as a “pressure cooker”. Their Director Miles Shipside says that the market “has been building up a head of steam every month since the beginning of the year”. Any landlord insurance client who is sitting on a London property will probably be feeling very pleased. According to Rightmove the supply of property coming on to the market is down 5% so far in 2013 compared to the first five months of last year. Prices are being forced up by increased demand from would-be buyers. No doubt the easier availability of mortgage finance is helping to generate a sellers’ market. Rightmove say that some agents are arranging group viewings to accommodate all the people interested in looking at houses and flats new to the market.
Many of our clients are thinking about increasing their portfolios at the moment. Do you think London is experiencing a boom that may turn to bust or do you feel that property in the capital will continue to rise in value? There is no doubt that it is far easier to acquire buy to let houses and flats outside London and the South East but do you receive such a good return? As always we love to hear from our clients so do not hesitate to get in touch with your opinions.
Property websites are very good places to keep abreast of the market. For details of the Rightmove House Price Index visit www.rightmove.co.uk
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