Winkworth figures taken from its website reveal that stock levels in central London fell by 27% between January 2009 and January 2010.  Stock levels for the whole of London fell by 3.8% in the same period and in the UK they fell by 3.7%.

This comes as no shock to many Winkworth agents in central London, who have been struggling to find available properties for buyers.  James Moran, Franchisee of Winkworth South Kensington, has a high demand from international buyers, he says:

‘International buyers, in particular Italians, now represent approximately 60% of Winkworth South Kensington’s enquiries. In what is now a vastly improved sales market, international buyers are taking advantage of the weakness of the Pound. However, the economic woes of Greece are causing some investors from the continent to pause for thought as concerns for the stability of the Euro are not far from their minds.’

Prices have risen with the growing demand and many central London Winkworth agents are reporting that prices are now at, or even above, 2007 boom levels.  Moran continues,

‘Wish-list flats, which are few, are being chased by the many.  Ground floor flats with direct access to communal gardens, first and second floor flats within garden squares and penthouses are now at, or just above, 2007 price levels. Despite the obvious shortage of stock, less covetable property is yet to reach this level – although we don’t think it’s too far behind.’

However, it is hoped that stock levels will now start to pick up as sellers become encouraged by price rises and levels of demand from buyers. Some sellers are starting to come forward now ahead of anticipated rises in interest rates later in the year, Alex Thomson, Winkworth Notting Hill, says:

‘Stock levels have generally been extremely low across the board over the past twelve months, although we have seen a slight lift in supply over the last couple of weeks. This is primarily resulting from sellers responding to the exceptional activity at the end of 2009. Some sellers are also increasingly aware of impending interest rate rises and putting their property on the market so as to beat the rush which might occur ahead of that.’

Despite an overall annual fall of 27%, stock levels went up by 1% from December 2009 to January 2010, which is an encouraging sign for buyers in 2010.