London homes 'to be on the rise'

Posted: 14 Nov 2008 18:20:14 GMT

Property prices in the capital could be enjoying another rise in property prices sooner than expected if some analysts' predictions are correct.

Michael O'Flynn, content editor of findaproperty.com, suggested that the worst of London's housing slump is already passed, and that while it may not be over yet, prices may still soon rise.

"There will come a tipping point at which buyers look at price falls and mortgage costs and conclude that it makes sense to buy again," he said.

Earlier this week Mr O'Flynn was convincing homeowners to reduce prices in order to be realistic.

"It's a difficult message for sellers to hear, but the bottom line is that this is a buyers' market. If you are serious about selling you have to price competitively," he added.

"The upside for sellers is that they are usually buyers too so what they lose on their property they will hopefully gain back on the place they buy."

Certainly, the lower base rates and lack of demand could lead to increased interest in a cheap property but with estate agent fees still accounting for a significant cost, many buyers will remain put off the property market.


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