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No denying London property crash

London’s premier homebuyer, SecureASale, this week announced the London housing market is in an undeniable crash.

Company Director, Tim Jackson says, “We are definitely in a crash, but not necessarily one that a price correction alone can solve.

“Despite the fall in prices, sales volumes in London are down around 70% year on year. This means that in effect, most houses won’t sell at any price, due mainly to the scarcity of ‘normal’ mortgage products on offer.”

Obtaining a mortgage has become increasingly difficult, particularly in the capital, over the past six months. This has left many would-be first-time buyers trapped in the unrewarding cycle of rented accommodation.

Jackson adds, “To get Nationwide’s widely publicised best tracker rate today, a purchaser has to put down a 40% deposit, a figure unthinkable only nine months ago and impossible for the vast majority of willing purchasers.”

He continues, “The truth is the housing crash is not a demand-led downturn like in the 1980s, but merely a side-effect of the credit crisis. The banks have turned off the tap of money and until they can find a way to get funds flowing again, the housing market will remain at the mercy of the institutions. In the meantime, property prices are in freefall and it’s either a fantastic buying opportunity or a fool’s playground. Time will tell.”