It goes without saying that the London property market is one of the most prestigious, sought after and costly markets in the world and there is always considerable interest in the conditions that are prevailing in the London property industry. There is some school of thought that it could be headed for another property bubble as the prices in our nation’s capital continue to rise inexorably.
The market in London, however, is never as cut and dried as many media outlets would have you believe and, whilst there is no denying that the prices in London are on the increase, the media panic about this leading to a potential price bubble might not be as clear cut as that.
Matt Sherlock, of leading London property search agents, The London Property Scout, investigates the recent thoughts about a potential price bubble and debunks some of the myths that have been purported by many media outlets of late.
Most news agencies quote data from Rightmove who base their evaluation on ‘asking prices’ not ‘sold prices’ and second, the 10% rise in ‘asking prices’ was based only on the borough of Westminster, which year after year level pegs with Kensington and Chelsea as having the highest house price growth in the UK.
This means to say that the data on the issue of a potential bubble in the London property market is a little misleading insomuch as its based on a particular subset of data that is always likely to be indicative of rising prices. Another misleading piece of information to emerge from the last property bubble to impact London was the fact that it was being bandied about that house prices in London had fallen by 25% but, in actuality, this only happened to a proportion of properties in the capital and many houses weren’t impacted to this level at all.
It is important to to view talk of impending property bubbles in London with a level head and not react in a knee-jerk manner because, to be honest, and as any good property search agent will tell you, the housing market cannot continue to increase unabated indefinitely and a fall is always going to ensue at some point or other. With this in mind, Matt Sherlock believes that there really is never a bad time to buy property in London, only bad properties to be bought. It is for this reason that more and more property investors are opting to utilise the services of skilled London property search agents like The London Property Scout, in order to help guarantee that they are putting their money in the right type of London properties.
The increase in property prices in London has indeed been extremely rapid over the last three months or so but this isn’t necessarily indicative that a bubble has begun. And, in the event that it has, so far as the London property market is concerned, it is invariably the case that it will bounce back much faster than it dropped in the first place.
Find out more about Matt Sherlock and his services at www.thelondonpropertyscout.co.uk.