Advertise Your English Rental Property simple, effective and affordable marketing online!

UK Investment property from just £34,500 High-quality student rooms in an emerging market with 10% net yield guaranteed

Holiday homes to rent - across the UK & Ireland

Calculate how much you can earn - rent out your UK holiday home here


Back to 2007 - James Bailey, Henry & James

It's like 2007 all over again...

It is like 2007 all over again. You would think that the property crash had never happened. Without a doubt, the prime central London property market is booming and confidence in property is soaring. Just today, we had a woman call and make an offer on a £3million pound flat that she had yet to even see. She was so desperate to buy something, and afraid that someone else will snap it up before she does, that she has put in an offer despite never stepping across the threshold.

I do not know how long this will continue. This frenzy – complete with gazumping, best and final offers and sealed bids – shows no sign of abating even though more stock is coming onto the market. Read any property expert’s recent opinion on the market and they will tell you that a lack of stock coupled with rising demand has pushed prices up. To a degree that is true but the supply problems are beginning to ease yet prices continue to climb.

In some desirable areas, prices already exceed 2007 levels. We were recently instructed on a one-bedroom flat in Eaton Square. The owner considered putting it on the market in 2007 for £595,000 but decided against selling. He recently put the flat back on the market at the same price and was delighted when three different buyers began a bidding war for the flat. With each potential buyer clearly determine to buy the flat, no matter what, we told each of them that the first person to exchange contracts after 11am would walk away with the keys. The buyer exchanged contracts at 11.17am and paid £700,000.

The property market obviously cannot continue like this but with demand so high, it will be a while before it calms. People have been wanting or needing to move for nearly two years but were reluctant to buy when property prices were falling. Now that the property market has regained its footing, that pent-up demand is being released. In other words, we are seeing at least two years’ worth of buyers clamouring to buy. With financing becoming more available, I see the situation becoming even more frenzied.

The danger, of course, is that we could find ourselves in yet another property bubble. More than likely, prime central London property prices will see a ‘soft landing’ once this demand is finally met.

James Bailey

James is head of sales at Henry & James. www.henryandjames.co.uk


More pages

Page 1: It's like 2007 all over again...

UK Investment property from just £34,500 High-quality student rooms in an emerging market with 10% net yield guaranteed

Holiday homes to rent - across the UK & Ireland

Calculate how much you can earn - rent out your UK holiday home here

All you need for a beautiful bathroom - at affordable prices

Advertise Your English Rental Property simple, effective and affordable marketing online!

Discounted hotel rooms in the UK - click here for Laterooms special offers

UK property insurance from intasure - Click here for great deals and up to 40% risk related discount on UK & overseas insurance


Browse our articles written by leading industry experts:

Overseas Property Buying Guides

UK Property Guides

Gardens and Interiors

Cosmetic Surgery Fact Sheets

Looking Good Guides

Money

Business

Community

Travel