We have just released the summer issue of our Market Analysis report, which tracks market activity across the Winkworth group. Key findings this quarter include:

 

- Prime property market dominated by April’s stamp duty change of 4% to 5% on properties worth over £1m

 

- Sales of prime central London property leapt 70% between February and March 2011 as buyers fought to beat the stamp duty deadline

 

- The number of properties available for sale in central London falls 67% between January and May 2011 – huge demand caused supply to fall 49% between February and March

 

- ‘Off-market’ sales accentuate London’s supply and demand problem

 

- 9% of all central London sales in March and April were off-market – compared to 4% last year

 

- Overall sales in London rise 70% between February and March 2011 but the bank holidays in April cause sales to slip back

 

- London is currently suffering from a severe shortage of properties for sale with the total number of new instructions between January and May falling 80% compared to the same period last year

 

- Demand in London remains strong despite a 5% fall in the total number of registrations  between January and May 2011 compared to the same period last year

 

- This demand has caused London’s sales stock to fall by nearly a third (31%) between June 2010 and May 2011

 

- Rents continue to rise as demand strengthens – tenant numbers have grown by nearly a third (32%) year-on-year (May 2010 compared to 2011) and this has pushed average rents up further

 

- Greater London drives overall rent growth – the average rent across all Winkworth properties is now £2,169 per month compared to £1,913 a year ago, an increase of 13%

 

 

Dominic Agace, CEO of M Winkworth Plc, comments:

“While financing availability for private buyers remains tight, there are some signs of improvement in the professional market with 55% more mortgage products available to property investors in the buy-to-let sector than 12 months ago. As a result, we have some hope that transaction levels will start to pick up in the second half of the year.

The rental market continues to be strong, with a shortage of supply creating a market which favours the landlord. This situation results from the lack of investment since 2007 and continues to underpin rental prices that have risen by over 10% in some areas of London over the last 12-18 months”.

 

Follow this link for a full copy of the report: Winkworth Quarterly Market Analysis (Summer 2011)