London Housing Market Enjoys Price Uptick in April Despite Slowing Demand, Rentals Remain Strong

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According to London-based real estate firm Douglas and Gordon, London home sales continued to slow in April despite a slowing demand by home buyers.

Douglas and Gordon sales director Ed Mead commented, "April was a predictably slower month but given we agreed the highest number of sales for a year the summer looks as if it may be very busy. However, demand and new supply are flat right now so although volumes will most likely stay thinner than we'd like, ongoing low rates must mean those looking are more likely to take the plunge and keep prices buoyant."

Mead further commented, "With first time buyers mortgage deals getting good press at last maybe it won't just be the top end of the market benefiting as the year goes on."



London's rental market is a different story.

According to Douglas and Gordon's lettings director Virginia Skilbeck, "We experienced a surge in interest over the bank holiday weekends as tenants used their days off to research possible properties to rent. However overall, the number of applicants actually registered in April was lower than last month."

Skilbeck further stated, "Supply of rental properties has increased by 25% when compared with April 2010, which is positive when moving into the peak months for the lettings market. There has been a 20% increase in new tenancies and an increasing number of re-lets, showing that landlords are not opting to sell and are cashing in on higher rental prices. Whilst tax rates to sell a property remain high and with interest rates staying low, buy-to-let properties are becoming more attractive to investors and we are seeing a number of landlords returning to the lettings market.

Some real estate experts also say that the recent royal wedding of Prince William to Kate Middleton has helped promote London to an international audience and are expecting this event to attract more people who may now want to live in London.

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