Spring is traditionally the busiest season in the property market calendar with activity often shaping the year ahead, say fabricproperty.com
Luxury London lifestyle
and property portal fabricproperty.com is owned and populated by more than 30 estate agents who specialise in the finest apartments and houses north of the river and believe that the spring market is extremely important for monitoring the trends for the year ahead.
Marc Schneiderman, Managing Director of Arlington Residential, member of fabricproperty.com, says:
“The spring market is seasonally a far more active time than the preceding months and we expect a greater volume of transactions, as indeed we have seen historically over the last few years.
"Last year in the spring quarter we saw over 15% more transactions concluded than the previous quarter. It is a period when buyers and sellers can see which direction their year is heading and make financial decisions accordingly.”
So what does the spring season 2011 have in store? Here are our top five predictions:
1. The ‘safe’ market of London is a magnet for overseas buyers
Mark Pollack, Director, Aston Chase, member of fabricproperty.com, says:
“London continues to be a mandatory location for the 'super rich' partly due to its reputation as a global financial hub.
"The city also boasts a plethora of outstanding schools and universities, which act as a magnet to wealthy oversees investors, many of whom purchase apartments/investments in London for offspring to reside in whilst studying in the capital.
"With the bonus season upon us, St John's Wood represents a perfect location for Canary Wharf-based buyers due to the fast Jubilee line underground link not to mention the ASL (American School in London) and the presence of the American Ambassadors residence in Regent's Park surrounded by the largest outdoor sports area in London.
"This is likely to be further compounded by recent events in the Middle East, which will inevitably result in an increased demand for homes in cosmopolitan 'safe and stable' locations such as London.
"This is particularly applicable to the areas in which we specialise namely St John's Wood and Regent's Park as sectors of the Middle Eastern and South East Asian communities have, for many years, been attracted to the area by the presence of the Regent's Park Mosque which is also known as the Islamic Cultural Centre in London.”
2. Marylebone emerges as a prime contender in the central London market
Graham Harris, Director at Harris Latner, member of fabricproperty.com, says:
“It has taken a long time for Marylebone to be talked about in the same hallowed tones as Kensington, Holland Park, Notting Hill and Chelsea but this is changing with the passing of every day.
"More and more buyers and renters are finding their way to the area and the result is a fast depleting stock availability of all shapes and sizes. If this continues at the same pace, we predict a rise in Marylebone property values during this spring alone, i.e. March-May 2011 of between 3-5% and possibly much more for certain types of property.
"Demand is being generated from the UK and abroad, in particular we are recording an unusually high number of overseas enquiries specifically from investors looking to secure a central London base for use in the future by themselves or their children that can be let in the meanwhile.
"Typical Marylebone residential rental yields are currently running at between 4% to 5% gross. The rental market in Marylebone is very strong at all levels and in many respects it could be argued that the demand from renters is even higher than from buyers.”
3. Investors will return to the market
Trevor Abrahmsohn, Managing Director, Glentree International, member of fabricproperty.com, says:
“Despite the gloomy economic outlook due to the shortage of stock most agents are crying about, it is my prediction that residential property – the old favourite – is going to be one of the most cherished investments of the year in London, with prices rising by about 5%.
"It looks like interest rates will remain within half a percent of present levels until the end of the year. New developments are few and far between as obtaining funding for them is still very difficult and the planning process is still as strangulated as ever.
"Buy-to-let investors are choosing residential investment over pensions and, at the same time, rents are rising by at least 10% in London. There are fewer and fewer properties available in any price range and that is having an upward effect on prices.
"There is still time to lock in a long-term fixed rate mortgage and although interest rates will undoubtedly rise over the next few years, if you are in secured employment, there is no better time to invest in your own property and build up a tax free asset that one day could be your pension.”
4. Access to communal gardens is a must
Tony Gambrill, Area Director at Chesterton Humberts, part of fabricproperty.com, says:
“Spring is a natural time for change in preparation for what we hope will be a good summer, and direct access to communal gardens will be on top of many house hunter’s wish lists.
"Many of the most desirable properties in Little Venice and Maida Vale are period conversions and mansion blocks often with communal gardens. Although many conversions will have their own gardens, buyers are attracted to properties that also have communal gardens, which offer green views and tend not to be overlooked, so offer more privacy.
"In a typical mansion block, where there are five or six flats per property, it is the property with the direct access to the garden that is the most desired. With lending still at low levels, I predict that the spring season will see property prices creeping back up as demand outstrips supply.”
5. Parking is a major focus for buyers
Vivienne Harris, Managing Director of Heathgate, member of fabricproperty.com, says:
“It is our opinion that the spring market will see a resurgence of buyers wanting security and parking as part of their main focus.
"Hampstead in particular affords little in the way of parking facilities and many of our buyers own luxury cars. The general thought that prevails seems to be that if you have an expensive car then you don’t really want to park it on the street.
"The other trend for spring is outside space, whether it’s a garden, balcony or terrace most people would like the opportunity of at least putting a chair or two in the open air, this is understandable especially once the weather improves.”:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.
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