London's Residential Sales Sluggish in February; Brisk Uptick Expected After Royal Wedding

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Based upon a new residential sales report by London-based Douglas & Gordon for February 2011, London is finally beginning to see new properties come onto the market, replenishing the depleted stock levels they have experienced for so much of the last year.

Ed Mead, Director of Douglas & Gordon stated, " Sellers are savvier about overvaluations and if they aren't selling at the expected price, they are starting to talk at levels where an increasing number of buyers seem prepared to pay."

Mead further commented, "Similar to last year, the market seems late but volumes will not get off the ground until May as vendors are choosing to launch their property after the April/May bank holidays and the Royal wedding."

They also report that the impending 1% stamp duty rise on properties over £1million next month has generated a flurry of buyers hurriedly offering on properties to complete ahead of the rise. Whilst this has helped the number of sales in the first two months of this year, they are preparing for stock levels and interest for properties over the £1m mark to be less in the second half of 2011.



London's rental market seems to be singing a different tune.

With almost five potential tenants for every rental property, there is still stiff competition in the London lettings market.

Douglas & Gordon's Virginia Skilbeck said, "Low stock levels continue to shape the market, although this month we've seen a 30% increase in rental properties coming onto the market at our Chelsea office, which historically signifies a change in the market with the other offices following suit. It's too early to tell whether these increased stock levels will be seen across all areas of London for the spring and summer markets or whether this is just an anomaly."

Skilbeck continued, "Our landlords are currently a mix of first timers who are relocating overseas and instead of selling up are letting out their homes; professional landlords and a few new buy-to-let investors. There is also plenty of activity at the higher end of the market from £3,000 plus per week, where rents are not only significantly higher than this time last year but are achieving close to or in excess of the asking prices."

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