Sales of Family Homes in London are Recovering

According to the latest quarterly report from Winkworth estate agents, sales of family houses in London are undergoing something of a revival, as sales appraisal figures increased by 7% year on year during the first quarter of 2012, and more homeowners are becoming interested in testing the market. The number of new sales instructions increased 20% year-on-year during the first quarter of 2012 compared to last year, and the number of new buyers registering at Winkworth offices increased by 12% in the first quarter compared to the same period in 2011.

The average asking price has declined slightly due to an increased number of properties for sale, and the average asking price for a greater London home is now £625,888. The luxury end of the market has been affected by measures recently announced during the budget, and the ending of the stamp duty holiday is expected to affect first-time buyers. 

There's also a growing shortage of attractive mortgage deals, but in spite of this the market for family homes is showing increasing signs of revival. Most people looking for a house in this category already own a property and have at least 20% equity, but simply need more space for a growing family. It’s estimated prices will remain stable in this sector, and the number of transactions will increase by around 5% to 10% this year.

However there are signs that the rental market within Greater London may have peaked, and there were around a third more properties available to rent during the first quarter of 2012 compared to the same period in 2011. At the moment average rental prices are £2,721 a month, but a decline in demand may put downward pressure on rental values during the coming months.