Jeremy is the founder of Mercury Homesearch, a leading expert on acquiring property in prime central London and author of 'The Prime London Property Puzzle.' He has acquired hundreds of millions of pounds worth of property in prime central London for his select list of clients. Jeremy has featured on Bloomberg Television and in numerous publications including The Financial Times, Businessweek, MoneyWeek, Forbes, The Times and The Telegraph, to name but a few.
When the commentary becomes relentlessly bullish and you hear the words “It’s different this time” or the more pompous “It’s a new paradigm” then it will be time to head for the exits or reduce debt. In the meantime, the wall of worry is distinctly good news.
Asking prices are merely a vague guide. This has been especially true this year.
Fears of interest rate rises, increased taxation on London property, stock market jitters in most jurisdictions, Jeremy Corbyn, house price to earnings’ ratios et al have many people sitting on the side lines.
The most important announcement for London and UK property prices does not appear in the housing section of the budget. No, the key point is the news that corporation tax will be reduced to 19% and then 18% - the lowest rate in Europe apparently.
If there is a Grexit then London prices are likely to rise as the safe haven status of London property (not to mention job opportunities) will continue to drive people in our direction.
One of the reasons why I think the market will continue to strengthen is that credit is becoming more available for property investment.
Although I do expect prices to rise over the next 12 months, I think 8-10% is more likely.
he bank of mum and dad are now the middle men between the central banks and the younger generations.
An interesting trend that we have observed recently is the off-market sale.
It is amazing how many buyers believe that negotiating large price reductions is impossible.