The London housing market remains in good health, with more people than ever attracted to living in the city. A recent survey by The Boston Consulting Group names London as the most popular city in the world to work in and according to new figures, employment in the Capital has risen by 3.7% in the last 12 months and the economy is now 2.7% larger than the pre-recession peak.
This confidence in the economy has heralded a welcome return to the local buyer market. With greater competition between mortgage lenders, there are now some attractive deals available, with competitive rates on longer term fixed rate mortgages going some way to allay fears of interest rate rises in the short to medium term.
The Department of Business, Innovation and Skills recently announced that 95.6% of sales so far this year across Greater London have been to local buyers. The imbalanced demand and supply ratio seen earlier this year has finally burnt itself out. From May onwards, Rightmove reported a fall in asking prices across London for three consecutive months, as sellers reduced their prices to reflect market conditions. Combined with greater levels of stock, prospective buyers now have a greater choice of properties available and less pressure to purchase. Those who were put off by the rapidly rising market earlier in the year are now returning. In the last three months, the number of new instructions has risen by 22%, with the number of viewings up 17% on the same period a year ago.
Despite high property prices in London and more challenging lending conditions, the number of first time buyers purchasing property in the Capital has risen to 39% according to our figures.
For more information about the London property market, read our Autumn property market analysis here.