Property prices in South West London were down 0.5% in the third quarter of 2015, compared to last quarter and by 1.08% compared to the same period last year, new data shows.
The Emerging Prime Index from Douglas & Gordon also shows that larger houses priced over £2 million experienced a plateau as the market continued to digest stamp duty rises from the end of last year.
However, listings priced below £900,000, which benefitted from price rises due to stamp duty changes, showed signs of slowing following a firm first half of the year but remained robust overall.
The index report says that buyer expectations around interest rate rises caused greater price sensitivity, which also impacted the market.
However in some areas where houses were priced under £2million, for example between the commons in Battersea, a 10% price reduction in certain instances ended the stand-off between buyers and sellers and generated more offers.
Meanwhile the emerging prime rental market in saw a mixed performance in the third quarter. Flats remained in demand, but there were pockets of extreme weakness in the market for houses.
The report explains that as corporate budgets remain tight, some companies have stopped relocating employees and their families. This slowdown in house sales has had a knock on effect on rentals, which are in demand while the buying and selling process takes place.
According to Ed Mead, the firm’s executive director, London’s emerging prime market has had a quiet 12 months driven by the ongoing impact of stamp duty changes on larger listings and expectations around interest rate rises.
‘However it is our view that the current slowdown will settle as emerging prime remains an attractive offer to foreign buyers. The current global economic instability reinforces our prediction that interest rates will remain at today’s levels for the foreseeable future,’ he said.
‘It’s interesting to see the rental market for houses seriously weaken as corporate budgets continue to be squeezed and French families in particular are noticeable by their absence. It gives rise to the question whether 30 something professional sharers could be the future given a changing demographic,’ he added.
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Source: Property News Spain