3
May
End to recession fears brings buyers back
The UK’s top tier property markets experienced a buoyant
month in April, with Prime prices increasing by 0.5% to
£449,689 and Prime Platinum prices rising by 1.1% to
£625,849. Annual growth of 3.2% and 6.0% was recorded for
Prime and Prime Platinum respectively.
The slightly subdued start to the year has given way to a much
busier period of activity, driven by a release of substantial
pent-up demand. Location noticed consumer confidence climbed this
month, amidst clearer signs that the economy is stabilising and a
double-dip recession has been averted, resulting in a flurry of
buyers returning to the market.
Now more optimistic of a lasting property market recovery, many
buyers who had been putting off their move over the winter have
taken the opportunity to purchase. This is particularly the case
for families hoping to upsize to a larger home further out of town,
fuelling competition for these types of property.
Supply-demand balance restored
The level of quality Prime stock increased by 4.4% in April, making
it 41% higher than its level twelve months ago. However, supply is
now being balanced by strong buyer demand, with all the typical
characteristics of an active spring market being displayed.
Election could be tonic for the market
Astute buyers and investors see this as a good time to purchase
Prime property in the right location and the General Election is
unlikely to stall property transactions across this sector. Wealthy
UK and overseas buyers will be largely unconstrained by the
financial impact of any tax changes and the prospect of a new
government may even help to strengthen the already improving
consumer optimism.
All evidence points to a continued high volume of activity
post-election, when the economic and financial outlook will be
clearer, and we could be facing a busier than usual summer as home
movers and investors prioritise property transactions while the
timing is right.