North London property markets set for good New Year
An unexpectedly good 2010 in the property markets of North and North West London has led local agents to be extremely optimistic for the New Year and beyond.
The agents, all part of luxury lifestyle and property portal fabricproperty.com, were asked to gaze into their crystal ball to predict how the London market would perform in 2011 and the results were extremely positive.
Fabricproperty.com is owned and populated by more than 30 of the most successful and well-known agents in North and North West London. The website covers London’s most affluent and prestigious neighbourhoods, including Belsize Park, Hampstead, Islington, Maida Vale, Primrose Hill and St John’s Wood.
London focussed
All the agents featured on fabricproperty.com will have been protected from much of the economic meltdown thanks to the desirability to live in the UK’s capital city. In fact, a recent report in the London Evening Standard revealed that the number of nationalities chasing London’s most expensive properties have risen to a record 51. “What will always be in our favour and what will define the 2011 market and beyond is the fact that wealthy overseas buyers regard London as a key place in which to own a property. More so than any other part of the UK, it is London that attracts foreign investment,” says Marc Schneiderman, Managing Director of Arlington Residential.
“The middle and top end of the North and North West London market is a little like a bubble within the general nationwide property market. We are much less affected and much more cushioned from the harshness of the economic climate than other locations,” adds Schneiderman. “The psychology of buyers in 2011 will play a major part in how the year shapes up. Although values have come back, buyers will continue to negotiate hard and will be very mindful not to overpay so realistic pricing and a willingness from sellers to be flexible is a must.”
Emerging technology sets portals apart
New technology will continue to shape the property market and transform the way buyers search. Fabricproperty.com will showcase quality video walk-throughs that will capture the true size and beauty of the property, as though users are seeing the home for the first time with the agent. “The Internet has totally transformed the market and I see this continuing to have a major impact into 2011 and beyond,” says Richard Barnett, Managing Director of Litchfields. “Property portals offer a fantastic filter and it is only those really serious buyers and sellers who will then go on to register their details with the agent. This means that although there aren’t as many buyers around, there are far more quality leads, which is very positive for estate agents and sellers.”
Supply and demand struggle remains
A common theme amongst all the agents was the limited supply of stock and its effect on pricing. "The new year will continue to see demand for good quality properties outstripping supply in desirable areas. Even as 2010 draws to a close and the market quietens down, we are still receiving multiple offers on properties above asking prices. I think 2011 will continue with this trend but any significant house price rises will be a result of demand in specific streets rather than general market rises across the area,” says Tom Gladwin, Managing Director of Parkheath.
Gated developments increase in desirability
In terms of the best performing property for 2011, it seems the tide is turning in favour of gated developments. “For 2011, we feel the most desirable properties will be those that offer maximum security, especially for buyers who want to be able to ‘lock up and leave’, “ says Vivienne Harris, Managing Director of Heathgate. “Properties within a gated development where you can park your cars safely will continue to be high on the wish list of people who travel for much of the year. Buyers are also very keen to have a concierge service and other such facilities that make life for the busy that little easier. Interestingly, people were very reluctant to pay the higher service charges a few years ago but a gradual turnaround has seen gated developments soar in popularity.”
A quiet and level year ahead
Summing up, Tony Gambrill, Area Director for Chesterton Humberts, says that 2011 will be a quiet but steady year for North and North West London property: “We don’t envisage any dramatic increases or decreases in property prices however we do expect that transaction levels will increase. We may see a spike of activity in the Spring around bonus time and again in the Autumn leading into 2012 and the Olympics. There’s also a new French school opening in Kentish Town in late 2011, so we expect a surge of interest in the catchment area of the school leading up to the its opening. Buyers are expected to be local, European and we expect to see more Chinese and Indians as their nations establish themselves as economic powerhouses.”
2011 property predictions at a glance
• London continues to be one of the most desirable cities in which to own property and the Fabricproperty.com catchment area will attract more wealthy overseas buyers
• Gated developments that offer good security and facilities such as a concierge service will prove very popular in 2011
• Limited supply in the very best areas will continue to underpin the market and keep buyers keen
• New technology will continue to make it easier for buyers to search for homes and also filter out those who aren’t really serious
• Interest rates set to remain low, with a chance of a rate rise in mid to late 2011
• Property price stability in North and North West London with no dramatic increases or decreases
