According to the property website Rightmove average asking prices in London were 1.2% up in February. On an annual basis asking prices in the capital are now 8.4% higher than they were at the same time last year. The average asking price in London is now £486,890. However, Rightmove sound a note of caution by saying that there are signs that the pace of rises is now slowing down. Their figures show that the average asking price is now (Feb18th) only 0.7% more than it was three months ago.
Rightmove reckon that some boroughs in London hold “international appeal” and have therefore continued to outperform the norm. These include places like Kensington and Chelsea where asking prices were up by 1.7% and Westminster which saw increases of 3.5%. However, prices were also up in places like Croydon, Hackney and Islington. Some of our landlord insurance clients will behave properties in these areas and will be very pleased with this sort of news. The question is will it continue and what will happen in less fashionable parts of the country? Rightmove’s figures are for asking prices so if you really want to study the market in depth you need to look at actual sale prices as well. These are available from several sites on the web.
In December, Rightmove published a Consumer Confidence Survey suggesting that landlords were tempering their rental expectations for 2013. They reported that only 25% indicated that they had already decided to increase their rents in 2013, with only around a third of those planning a rent increase of more than 5%. We should be interested in how our landlord insurance clients are faring now that 2013 is well under way. Have you managed to avoid void periods and kept your rents moving up or is it getting tough?
It is worth keeping an eye on the Rightmove site to keep abreast of news in the market. Every landlord needs to be as well informed as possible.