Despite low inflation and some expectations to the contrary, interest rates have stayed low and credit remains affordable. This state of affairs looks set to continue until May’s general election.
Properly understood, current market conditions are a blessing in disguise. Fears of a bubble in the market have abated as short-term speculation has declined from levels seen early last year. A spirit of pragmatism pervades this calmer atmosphere and sensible offers are being made and accepted. We see this as a positive trend insofar as it reduces the likelihood of a more severe market correction in the coming years.
It is the belief of this agency that London’s unique attractions, the short supply of housing and high levels of demand put the local residential property market in a solid position for the present and create the necessary conditions for gradual capital growth over time. Other property markets around the world can only envy the stability and certainty that characterises London.
Large-scale regeneration projects underway across the city, most spectacularly in Nine Elms, have created more buoyant sub-markets within London. In an otherwise steady market, the opportunity for more substantial capital growth presents itself as infrastructure networks come online and developments mature into communities.
