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‘Homes famine’ prices buyers out of market
Ruth Bloomfield28.09.09
The number of homes for sale in parts of the capital has fallen by more than 40 per cent in a year as the “property famine” intensifies.
Experts believe the shortage is artificially driving up prices and could result in another crash later in the year.
The number of homes on sale is down in every borough, according to research by property website Rightmove. Estate agents report a particular shortage of family-sized houses.
The worst affected borough is Waltham Forest, where there are just over 1,000 homes on the market — a 42 per cent drop from 1,740 at the same time last year. There are 41 per cent fewer homes on sale in Harrow, down to 1,085, 39 per cent fewer in Kingston and 35 per cent fewer in Camden.
London-wide there are 60,591 homes for sale — 26 per cent down on last year. Miles Shipside, commercial director of Rightmove, said a lack of mortgage finance and fears about job security were deterring owners from selling.
“The shortage means that there is an upward pressure on prices, and this is making it harder for first-time buyers to get on to the property ladder,” he said.
Estate agent Lindsay Cuthill, a director of Savills, said would-be buyers were exceeding available homes by almost threefold. He cited an example of a flat in The Little Boltons, South Kensington, which was viewed by 60 buyers. Eleven people bid six-figure sums for the property, which sold for £1.25 million.
According to the latest figures from the Land Registry, prices in the capital increased in June and July to an average of £306,963.
The borough faring the best is Kensington and Chelsea, where there are 1,503 homes on sale compared with 1,529 a year ago, a two per cent drop. Supply fell by five per cent in Hammersmith and Fulham and eight per cent in Southwark. Falls in every other borough were in double figures.
James Hyman, head of residential sales at Cluttons, said the mini-boom would be short-lived and that prices would fall again in November, not recovering until late next year or early 2011.
Reader views (3)
Who are these 'experts' who can predict crashes?
The last lot of 'experts' were predicting a crash that would have resulted in immediate and devastating 40% price drops every year since 1999.
My next door neighbour has just sold his house for 20% more than I paid for mine in 2006. As far as I can tell, there was never a crash in the first place. And at least I don't have to pay rent.
- George, London
Where is Gordon Browns recovery ?
Are we heading for the double dip?
- Andrew, Ely UK
More claptrap brought about by estate agents trying to increase turnover.
Ignore all of it !
- James, City of London
