The London Property market broke its six-month stalemate with Cluttons reporting a significant increase in buyer inquiries. According to Cluttons lower prices and cheaper loans were encouraging buyers to make deals in areas such as Clapham and Chelsea where there has been significant price reductions.

James Hyman, partner for residential sales at Cluttons stated that they have experienced the busiest January in five years and inquiries have increased by more than a 100 per cent since the beginning of the year. This is fueled by the buyers’ perception that even a further reduction in prices would not present a better borrowing opportunity than the affordable current rates.

Mr. Hyman further explained that the decreasing risk of property investment together with low stock market values and banks not offering any form of returns is making buying a cheaper option than renting. However he cautions that the market is in an extremely volatile and fragile condition. Mr. Hyman stresses the importance of property agents not being carried away with valuations when there are signs of a shortage of supply which may occur as vendors delay selling due to lack of confidence.

Feb 18, 2009