London residential market and the recent developments
There is a huge surge in the London real estate market ever since the year 2011 and the market are becoming strong despite the fact that it has only limited stocks. The sales in this area prove to be up and running and was much more active in the first quarter. It was predicted that there will be demand before Christmas but the opposite is what happened with applicants surging to a greater level from the year end to the month of February.
The sale market touched up to £3 million and there is a raise in the activity at the beginning of the year 2011 as the purchasers were able to make cash purchases in this area. Contrary to this the £3 million to £8 million market bracket has come down with its activity. This is expected to surge in the next quarters as financial institutions and banks are set to pay bonuses during that period. Banking bonuses is expected to bring in a temporary boost to the market and is set to compensate the sales reduction that is bound to happen from April 1st because of the 1% Stamp Duty increase on the properties. If the property is over the value £1 million then the Stamp Duty will be 5%.
The letting market has also seen a great improvement from the beginning of the year with applicants level doubling up on February of this year from what was there in December 2010. Offer levels and viewing have also risen to an equal standing that paves way for a good quality rental accommodation in the world of economic changes that are frequent. Pricing has not gone up to a considerable level though the pricing is good in some of the major locations. In the coming years the real estate market in London is set to see more changes.
