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The London property market is set for long-term prosperity, according to estate agent Hamptons International. Although the credit crunch took an adverse effect on the market, this was a short-term phenomenon according to the organisation.
"The central London property market has bounced back into life after a seriously 'rocky' period in September," said Marc Goldberg, London regional sales director, Hamptons International.
"The market suffered a short-lived crisis as a result of the 'credit crunch', which created panic and, not surprisingly, severely dented buyer confidence."
However, short-term economic conditions made the market volatile during September. "None of us had experienced a 'run' on a bank in our lifetimes and the Northern Rock experience had a dramatic short-term impact which brought the property market in London to a veritable standstill for two weeks," continued Mr Goldberg.
"Over 60 per cent of our agreed transactions fell-through in September as a result of 'down valuations' by surveyors, 'chipped bids', or buyers simply deciding not to proceed."
It is estimated property prices fell by ten per cent in the capital over the period, as vendors were forced to realign prices with what buyers were able, or willing, to pay.
Yet, the market now appears to be regaining lost ground. "We now appear to be going through a strong and fast period of recovery having witnessed a very robust October market in which buyer numbers and the volume of sales agreed have returned to normal autumn levels," said Mr Goldberg.
"Indeed, we are registering around six new purchasers for every new property coming onto the market." Supply of houses is now 20 per cent below the level experienced during September 2006, and this has helped to stabilise prices and prevent further falls.
"In short, the economic fundamentals that drive the property sector currently remain solid with low inflation, high employment and a probable reduction in interest rates in the near future.
"The result – long term sustainable stability, rather than a crash," concluded Mr Goldberg. |
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