LONDON'S REAL ESTATE MARKET

London's Real Estate Market

Abstract

With cautious optimism is the best way to recount how we are viewing the market at the instant here at very dark Brick. Nobody forecast the increase in prices which we are experiencing right now, but as this is due largely to the lack of supply in the London house market, connected with high figures of purchasers; it's wise not to get too over excited. So what can we anticipate in 2010?

London's Real Estate Market

1. Brief background

This all depends on what happens to interest rates, mortgage accessibility and unemployment. In London, once interest rates start to proceed back up, it is expected we may glimpse a large number of properties arrive onto the market, and this could put a stop to the latest cost increases we have glimpsed over the last couple of months. However, most professionals forecast it could be quite some time before we glimpse interest rates rise. We do envisage that prices will continue to rise modestly in 2010 due to lack of supply, and continued demand from investors, funds and bonus money, but this will level out and the year will probably end largely flat (Brown, 1999).

2. The aim of the Research

Property markets tend to be led by strong feelings and at the moment, people are feeling an allotment more confident than a year ago. There has been a signal of good report approaching from the markets and persons usually feel that the lowest is now over. Bonuses are furthermore due to be important in the city for some financial organisations, and some of this cash is bound to be expended on London property. At the same time, investors still seem to favour bricks and mortar over other forms of investments and it's difficult to see demand easing over the next few months. We are also starting to see interest from the institutional market, with several property capitals being set up recently, specifically to come by residential property in Prime cantered London.

A sudden and important increase in interest rates would cause havoc on the market. However this is an unlikely scenario. Continued increasing job loss and need of mortgages for those without large down payments will halt any genuine recovery.

3. The Research Question

With cautious optimism is the best way to recount how we are viewing the market at the instant here at very dark Brick. Nobody forecast the increase ...