The figures from estate agent March & Parson, also show that the ratio of supply and demand in January reached a four year high and strong demand is pushing up prices. The average price of two bedroom properties in outer prime London increased by 17% in 2013, an increase of almost £100,000.
‘Now is the time to get a jackpot price on property thanks to a surge of potential buyers entering the market in the New Year. These extraordinary conditions have created a strong seller’s market and one of the best opportunities to sell property in recent years,’ said Peter Rollings, chief executive officer at Marsh & Parsons.
‘But conditions like this won’t last. Many people believe that the best time to market property is during the busier months of the spring. But these sellers could be missing a trick as the increasing levels of property supply at that time of year will dissipate current levels of demand, and bring about a return to more normal market conditions in the spring,’ he added.
The research also shows that in January there were 23 registered buyers competing for each available property on Marsh & Parsons’ books, the highest level since 2010, and up from the ratio of 14 registered buyers per property in January 2013. The firm pointed out that compared to the same point last year, 19% more buyers entered the market in competition for 28% fewer properties, making this a strong seller’s market.
For the last four years, an average of 10% more property has become available between the months of January and April. This percentage jumped considerably between 2012 and 2013 as the property market recovered, and if this trend continues, 18% more property could hit the market by spring 2014.
‘London’s rising population, together with a perfect combination of low interest rates and competitive mortgage finance has created a surge of potential buyers. But the supply of housing stock has remained more subdued. Our more astute sellers are putting their properties on the market now because they know that the imbalance of supply and demand will help them to get a great price,’ explained Rollings.
‘In a seller’s market, property regularly goes for over the asking price, so buyers need to be realistic when viewing property and placing bids. When they find their chosen property, they must not delay. Being decisive is key to successful negotiations,’ he added.
The firm says that the average price of a two bedroom property in outer prime London locations such as Brook Green, Fulham and Barnes, now stands at £673,812. This is an increase of £98,214 since the fourth quarter of 2012 when the average price of a two bed in these areas was £575,597.
Looking at average values across all property types, growth in outer prime London outpaced prime central London by 50% during 2013, with annual growth of 15%, compared to annual growth of 10% in the prime central areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico.
The top five outer prime hotspots where the highest levels of growth were recorded during 2013 were Barnes with average annual price growth of 19%, Balham, Clapham, Fulham, all with 18% annual growth, and Battersea with 15% annual growth.
Rollings pointed out that last year the biggest price increases were to be found in the so called outer prime London villages which are all popular with UK buyers and are favoured for their community feel and local atmospheres. Slightly lower property prices in these areas also attract those who may have been priced out of more central areas.
‘But early indications in January point to a turnaround. While parts of outer prime London sped ahead in 2013, our data suggests that prime central areas are due for a growth spurt in 2014. This was beginning to happen in the third quarter of last year and looks set to surge forward later this year,’ he added.
