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All Go for the Easter Property Market

It might be Easter holiday time, but it's still all go for the property market. The Council of Nicea decided in 325AD that Easter would be held on the first Sunday after the first full moon occurring on or after thevernal equinox. This means that we can predict on what date Easter will fall far out into the future. In the year 9999Easter will be on March 28th, if you were interested. After that my Easter calculatorruns out of years, though I imagine we will all be wearing silver suits and using hoverboards. What is a little less easy to calculate is where exactly the central Londonproperty market will be going in the next six months or a year. Supply is tight, demand is good and sterling is stable.The market has risen steadily for about six years. The Government has taken away some of the tax breaks that make Central London attractive to overseas buyers and have also stimulated the wider domestic market. This may encourage some overseas owners who have been invested for four or five yearsto call the top of the market, as they see it, and look to take some profits. There is a faint whiff of a bubble about all this. Only a faint whiff, but the press have been picking up on it and if enough people take notice it may be enough to take a little bit of steam out of the market, allow a period of consolidation and then the market will be able to proceed in a more orderly manner. I don’t know if this will actually happen but 10% to 15% rises in a year with thin volumes is not sustainable in the long run. So what does the current Londoninvestor do' If you are thinking along the same lines it may be worth calling and having a chat to explore the options. Some owners put their properties out to rent in uncertain markets and come back and review after a year or so. Current low rental yields make the selling argument more compelling if you have a better use for the cash. I think what this demonstrates is that this is a very difficult market to call. There are very good reasons to feel bullish but I feel a note of caution is in the wind.  

It might be Easter holiday time, but it's still all go for the property market.

The Council of Nicea decided in 325AD that Easter would be held on the first Sunday after the first full moon occurring on or after thevernal equinox. This means that we can predict on what date Easter will fall far out into the future. In the year 9999Easter will be on March 28th, if you were interested. After that my Easter calculatorruns out of years, though I imagine we will all be wearing silver suits and using hoverboards.

What is a little less easy to calculate is where exactly the central Londonproperty market will be going in the next six months or a year. Supply is tight, demand is good and sterling is stable.The market has risen steadily for about six years. The Government has taken away some of the tax breaks that make Central London attractive to overseas buyers and have also stimulated the wider domestic market. This may encourage some overseas owners who have been invested for four or five yearsto call the top of the market, as they see it, and look to take some profits.

There is a faint whiff of a bubble about all this. Only a faint whiff, but the press have been picking up on it and if enough people take notice it may be enough to take a little bit of steam out of the market, allow a period of consolidation and then the market will be able to proceed in a more orderly manner. I don’t know if this will actually happen but 10% to 15% rises in a year with thin volumes is not sustainable in the long run.

So what does the current Londoninvestor do' If you are thinking along the same lines it may be worth calling and having a chat to explore the options. Some owners put their properties out to rent in uncertain markets and come back and review after a year or so. Current low rental yields make the selling argument more compelling if you have a better use for the cash.

I think what this demonstrates is that this is a very difficult market to call. There are very good reasons to feel bullish but I feel a note of caution is in the wind.

 

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