A rock bottom supply of homes on sale is helping to reinvigorate London sales according to a market monitor.
The website Home says Greater London’s price correction is complete and it now anticipates a wave of investment purchasing, taking advantage of high rental yields as a result of low sales prices.
This “will trigger breathtaking growth in home values over the next 12 months and beyond” says the website.
However, currently stock levels are down 18 per cent in just a year in the capital, fuelling its potential price recovery.
The picture is not so good in most other parts of the UK, although the website notes how relatively well the market is managing overall through the long-running Brexit hiatus.
Home says that at one extreme, northern and western regions (especially Wales) are in the final throes of their growth phase while the East of England is firmly in the grip of the inevitable price correction following a long period of what it calls ”unsustainable growth.”
The South East property market, like that of London, is showing some renewed strength but it warns that both the East and West Midlands property markets are destined for a painful period of price correction after many years of excessive growth - 36.4 per cent and 35.9 per cent respectively since September 2012.
Steady home price rises continue in the northern regions and the risk of price falls looks very low, it says, but only Wales continues to show real growth in the form of year-on-year home price increases above the official rate of inflation.
Annualised price growth across England and Wales remains in the red but by only 0.1 per cent, making this the eighth consecutive month registering negative growth according to Home.
The site’s key measurement of Typical Time on Market for England and Wales is currently 96 days, just six days longer than in September 2018.