Savills have today released their latest residential research, which looks at the prime residential markets, focusing on both London and the rest of the UK.
A summary of their findings follows:
- The recurring theme across the prime markets is that we have entered the first stages of what we think will prove to be a bumpy recovery. Buyer interest and sentiment, at present seems to be strong.
- We are by no means out of the woods yet though. All prime markets are showing a seasonal improvement. The true test will come in the autumn when more stock is expected to come to the market and the depth of the market will then be tested.
- We believe that the economic outlook, and city employment projections in particular, would have to be improving to ensure that the momentum is carried through to the winter and to allow the current level of pricing to be sustained.
- A worsening economic outlook, or even a dearth of noticeably good news could erode the spring growth again by the year end, particularly if bonus money remains thin on the ground or only covers small patches.
- However, irrespective of short term price movements, we consider improved purchaser activity to be an important sign for the first stages of recovery in the prime markets. Even if the recent increases seen in the London markets prove to be no more than a mini recovery, it is nonetheless a natural and important part of the bottoming out process. We stand by our forecast that the prime markets will eventually lead the rest of the UK residential market into recovery.
Further information on the outlook for the prime and UK housing markets from Savills Research can be found in ‘Spotlight on Housing Market Recovery’ at www.savills.co.uk/research