Data from Winkworth estate agents reveals that property stock levels peaked in October this year. It would appear that a number of sellers decided to put their property on the market in October, in order to sell before Christmas. The same figures show that property stock levels, which first rose in June, then started to decrease in November. It is expected that stock levels will start to increase again next year, Ian Dickson, Franchisee of Winkworth Hammersmith and Shepherds Bush says:
We have seen an increase in new properties to the market which we are confident will carry on into 2010; particularly if mortgages ease and interest rates become more competitive.
In comparison, property stock levels in Central London, although they rose slightly in October, have remained at relatively the same level since April this year. Central London has always been a coveted area to buy in and prices here are recovering quickly. The market has been helped during the downturn by foreign buyers, keen to own property in London and to take advantage of the comparative weakness of the pound. The reported return of bonus buyers to the market will further exacerbate competition for property in Central London. James Moran, Franchisee of Winkworth South Kensington says:
Buyers not linked to the financial sector are anxious to purchase before early next year when the bonus buyers will return. The financial sector now represents 15-20% of general enquiries in our office, compared to 5-10 % in August this year. In what is now a sellers market, the return of bonus buyers next year could make the already stiff competition for property even more pronounced.
It is anticipated that interest rates will rise next year, which could encourage more home-owners to sell. Ian Dickson says,
I think interest rates are one of the factors keeping stock levels low; would you move if you had a tracker at 1% and the best deal you could get on a new mortgage was 5%?
However, the general election could also affect peoples confidence, and consequently property stock levels, Dickson continues:
Historically, a month or so prior to an election, people sit and wait to see what happens. As a consequence, we may struggle during the normally busy spring period. However, I would expect to see a wave of optimism sweep over the country after the election - unless the new government bring in tough spending cuts/tax increases, which will have a negative effect.
