08 Feb Current news on the London property market
As London mortgage brokers, specialising in assisting London’s Professionals; keeping an eye on the London property market is a key part of what we do.
It is no secret at all the London market has done better than the rest of the UK over the last 6 years.
In fact, as documented by the FT last week, “Houses in London’s 10 most expensive boroughs are now worth as much as the property markets of Wales, Scotland and Northern Ireland combined”. This detail came from Savills originally.
The question is whether this represents, as claimed “a rapid polarisation of the market, with property values falling in every region of the UK other than the capital” or just a part of the economic and property cycle that seems to keep repeating.
After all – property prices have always followed London’s lead in the UK – in the same way as in the last 100 years of so, the European and British economy has followed the USA. Whether this remains the case will be seen.
This time the details seem different – as money surged into prime London property as a safe haven from worldwide financial uncertainty. However could it transpire that this was a long term play rather than just a short term panic?
In the meantime, Funding for Lending is allowing banks to take cash off the government and lend it into the housing market and onwards into the economy. There is increasing talk of looser monetary policy and inflation, this week from the outgoing Chairman of the FSA and the new Governor elect of the Bank of England and George Osborne himself.
Apart from that – no-one has mentioned it!
As unlikely as it may have seemed a few years ago; it may well transpire that the property market is at the beginning of another cycle. It really is increasingly difficult to believe that a property bust lies in the immediate future.
If 2008-2010 didn’t create the conditions for that – then what does?
It does seem like a crazy system. We are not here though to judge the rights and wrongs; just to make London’s professionals prosperous.
This will be good for London mortgage brokers, London’s professionals and for those who are quick off the mark.
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