The property market is approaching the bottom of its cycle, says a new report from Cluttons. Prices will have fallen sharply by early 2009, it says, after which transaction activity will recover. Prices in London are set to stabilise and then bottom out at 25-30% below peak prices over the next twelve months and investors and temporary renters return to the market. This will deliver greater competition for well priced houses amongst buyers who have large deposits and good credit ratings, Cluttons predicts.
Many London residents who have made considerable profits on their property are preparing to take advantage of falling prices to upsize, and so kickstart the market. Richard Cotton of Cluttons said: ‘While 2009 will undoubtedly be another turbulent year for London’s property market with transaction volumes remaining historically low, I believe we are approaching a turning point in terms of price falls. There are lots of buyers watching the residential market very closely, and they are desperate not to miss the floor when it arrives.
‘I expect the London market to remain active in 2009, while tenants will face the greatest choice of property they have enjoyed for years.’