In Central and West London, prices have fallen by up to 25% over the past twelve months. Marsh & Parsons expect prices to continue to slip in the first half of 2009, though the rate will be considerably slower. They are predicting a peak to trough fall in house prices of 30% in the capital – prices have already dropped significantly and buyers are already back in the market.
Managing director of Marsh & Parsons, Peter Rollings, said: “London was first in to the downturn and it will lead the way out. We’ve already seen the worst of the credit crunch impact on London’s property market – it’s not going to recover immediately, but I’m confident we’re near the floor – each week sees more buyers back in the market. In order to stoke recovery, the government must work with lenders to make mortgages available to buyers. We know there are people out there who want to purchase their first home, or move house – but the lack of mortgage finance is still debilitating.”
The deteriorating health of the market at the end of 2007 encouraged large numbers of people to rent rather than buy while the market stabilised. Tenants registering with Marsh & Parsons were up over 50% in the first 9 months of 2008 compared with 2007. But those who rented in 2008 will come to the end of their one year tenancy in the early months of 2009. For people wishing to invest in a home or a ‘buy to let’ for the mid to long term, the 2009 market presents a rare opportunity to buy at, or very near, the bottom – maximising potential capital growth.
