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London property a 'bright spot' in the UK market
13 May 2009
London today emerged as the one bright spot in a still troubled housing market as confidence tentatively returned to the capital.
Housebuilder Barratt Developments said sales of homes in London were 20% higher in the first 19 weeks of this year than they were last - far outstripping sales elsewhere in the country where the figure is around 4.4%.
Marc Goldberg, who is head of residential sales at leading London estate agent Hamptons International, added to the optimism declaring that "we are close to hitting the bottom of the market" having enjoyed three months of strong trading over spring.
Two out of three homes on the market with Hamptons were sold in April compared with just one in five at the same time last year.
However, Barratt chief executive Mark Clare remained cautious and said until mortgage lending improved there would be no recovery.
"It is too early to talk of green shoots in terms of the housing market," he said. "There is some stability returning to the market with a good performance in London but the bottom line is that until we see mortgage approvals going up we remain cautious."
Between 30,000 and 40,000 mortgages have been approved each month so far this year - well short of the 50,000 to 60,000 Clare reckons is needed for the market to stabilise.
Reader views (5)
i agree completely, this is a PR coup
- Mario Kempe, london, 14/05/2009 09:16
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Another effort to talk the house prices upwards which will once more fail. Never believe or trust people with vested interests on a matter.It is like Greeks baring gifts.
- Nicholas, LARNACA-CYPRUS, 14/05/2009 09:13
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60000 mortgage approvals per month was the bottom of the 1989-95 slump. Stabilisation volumes will be north of that figure, not below it. Anyone with an ounce of common sense will sit on their hands until volumes pick up considerably (probably 2012).
- Doug Watt, london e14, 13/05/2009 14:38
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Well one went for £18 million recently; and at a reduced price from £40 million.
Soon the whole country will be buying mansions; get in quick you first time buyers; or you will lose out on all the goodies.
- Mickyinlondon, london, 13/05/2009 12:40
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well, what is it? 20% higher? but close to hitting teh bottom? In other words, still dropping?
1 in 5 sold last year. 20%
2 in 3 sold this year 60%
The whole story, as short as it is, contrdicts itself all over the place.
All fine with the industry trying to use teh media to create optimism so it will sell more and earn more - we're used to those tactics, but not at the expense of believable stories please. Looks like a fantasist, Marc Goldberg, vs a realist Marc Clare.
- Maurits Van Eijck, Billericay, UK, 13/05/2009 11:37
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