propertytalk Live! - Good growth expected in London property market

propertytalk Live! - Good growth expected in London property market

The state of the London property market is always followed with interest by home owners and property observers alike.

Here Michael Hodgson, Chairman of London Estate Agents Douglas & Gordon gives his overview and predictions for the London sales and lettings markets in 2011.

"The London sales market experienced good growth in 2010 with properties in creasing in value by an average of 11.5%, slowing towards the end of the year with sales volumes down 42% year on year.

"This is perhaps not surprising in the wake of the coalition government's autumn budget, expenditure cuts and tax increases. London vendors and buyers seem to have adopted a 'wait and see' policy with the number of applicants also down by nearly 8% year on year from a fairly low base.

"This is likely to carry through into the first few months of 2011; but at the very top end, the spectre of the stamp duty increase in April may stimulate demand. At all levels of the market there will be sensitivity to the prospect of interest rate increases, so we expect a number of buyers to 'jump in' before rises take effect.