A big drop in the amount of property for sale has driven up prices by nearly 10% in central London already this year, a leading agent has said.
Douglas & Gordon said supply is down by 30% on this time last year, while demand has remained unchanged.
Chairman Michael Hodgson said: “We are half way through the year and capital values in D&G land have already risen 9.6%. Indeed, the last quarter saw the strongest quarterly growth in central London for nearly four years with a 5.4% increase.
“So with falls unlikely, we have undercooked our prediction of an 8% increase in capital values in 2013. We may have egg on our face, but not as much as some of our illustrious competitors who predicted a 1% fall or a 0.5% increase.”
The drought is also confirmed in a new report by the website Home, which said that in the first six months of this year, almost 65,500 homes across the whole of London were put on the market. Three years ago the figure was 87,400.
Looking back further, over the last six years supply has contracted by 67% in the Greater London area.
Last month, in June, supply contracted to under 10,500 homes – 40% down on three years ago.
Doug Shephard, director at Home, said: “Home price rises in and around London seem to be relentless. Affordability issues for equity holders, let alone first-time buyers, are growing and hinder attempts to move.
“Consequently, the capital finds itself in a bizarre situation: market prices are showing signs of overheating but, despite this, they are being further inflated by the severe drought in property stock – the characteristics of a classic investment bubble.”
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Comments
Anyone waiting for Mr RR to comment again - please note that Elvis has left this particular room and is in the process of throwing a lit firework into another as I type!
If past history is anything to go off, he will not return to this thread.
Oh, dear, Mr RR - you ARE a confused soul!
When you stop listening to yourself breaking wind and believing it's music to the ears of the world, THEN and ONLY THEN will your posts be met with anything other than ridicule. And then you will continue to throw your toys out of your pram, unfailingly showing yourself as the spoilt brat that never grew out of tantrum mode.
The sad thing is that 'Ampersat' was actually prepared to give you a fair crack of the whip - but of course you have no whip to crack so you ran away in a huff yet again.
Change your avatar, Sir. Drop the key - and adopt a dummy. It will be far more appropriate.
Moving on, as they say...
You don't have any questions or wish to find out about anything new?
You seem to be happy with the way things are going in the housing market generally.
Nothing much more I can say to you then!
Moving on ...
Awww - whassamatter... had a bad day at the office?
Silly me - you don't have an office.
So - you don't want to spread your joy today and 'enlighten' me as to your "Ten Commandments". That's okay - I'm none the poorer for it.
You say that I "...clearly don't know an awful lot about how the UK private housing market works or about how to enhance it." Well, Sir - in my tiny corner of the UK I'm doing pretty okay in my ignorant state - so I'll let the rest of the UK get on with doing it your way and see who comes out smiling, if that's all right with you.
I clearly couldn't cope with the knowledge you have to impart - me being a mere mortal and all that.
BUT... getting back to your long (and unbroken) history of strategic retreats, what about your last 'show and go' when you briefly locked horns with 'Ampersat'? Come on, Mr RR - this man talks your talk - so why wouldn't you play with HIM?
Just a reminder where the thread is - now relegated to page 5 of the Archive - here is the link:
http://www.estateagenttoday.co.uk/news_features/Housing-market-recovery-threatened-by-low-volume-claim
...your last comment suggested that you were seeing white rabbits.
No surprise there, then...
Dear PeeBee (or whoever you are),
You clearly don't know an awful lot about how the UK private housing market works or about how to enhance it and you're wandering off-topic whilst being rude and aggressive again, so I'm not going to spend any more time fending off your advances. I have better things to do.
Are there any other readers interested in discussing/exploring these issues, in a more serious and adult fashion perhaps?
" PeeBee,
Do you know any of the 10 Commandments necessary for keeping the private housing market functioning?"
These would obviously be YOUR 'Ten Commandments', Mr RR - and NOTHING that would be recognised in the real world outside of your protective dome (so why isn't it protecting US?)
Sorry - but when it comes to your 'bible' I'm strictly a non-believer. But, hey - try your hardest to convert me if you wish.
I'm ready if and when you are... ;o)
So you don't then.
Oh... and on the subject of ridiculous posts, PLEEEEEASE be a good chap and do your usual SEO/advertispam job - and copy and paste your latest painfully amusing blogpost here on EAT so that I and the entire property industry can 'put you right' once again. And again.
We consider it part of the service - and THAT one is just begging to be served an ace or two... ;o)
PeeBee,
Do you know any of the 10 Commandments necessary for keeping the private housing market functioning?
These are the 10 essential ways to make and keep the UK housing market self-actuating in all economic conditions.
Can you guess any of them?
I would be happy to explain each.
So... crawled out from under he rock again, Mr RR?? Do you consider your wounds from your skirmish with 'Ampersat' have healed sufficiently for you to stick your head over the ramparts once again?
Then, like the ridiculous post below, you continue to show that you actually realise zero about anything.
Helps to keep up the amusement value though. It seems that it is the ONLY value you understand - and CERTAINLY he only one that you can possibly add to.
Too many in the house selling business are mis-reading the situation out there and this is causing even 'more' confusion!
If supply is disappearing, then instead of reacting to increase asking prices to try and encourage more supply, think that supply is drying up because sales are getting too hard to achieve. The incentive for people to try and sell is 'to be able to' sell and also to buy too; preferably simultaneously.
To improve the ways of achieving sales 'the valve to be opened' is the one that starts reducing asking prices, not increasing them!!
This is the basic, but disastrous, mistake being made by our so-called captains of industry.
The cost of such a fundamental mistake to the whole economy is: - well I'm sorry to say it's incalculable.
The supply is down because most of the sales over the past couple of years has been to foreign investors. Now they are sitting on them renting them out and hoping for capital growth.