Is There a Bubble About to Burst?

What is happening to prime London property prices?



The word on the street is that prices can not go any higher; they have reached a level of ridicule now. That may be the case for the stock we are used to seeing but there is still room for increase for the best of the best.



If you believe that prime London property has quarterly cycles, like we believe, then next quarter will see large number of new properties coming to market.



These properties will be the best there is and prices will be truly unbelievable. Some of the best properties we have seen over the last month have belonged to traditional English families who own exceptional properties in fantastic locations. For many, the long debated move to the country is now in motion.



Elegantly, cashing in and moving out.



Another interest rate rise however will certainly cool the buying frenzy and prices will stabilise. Properties will shift off the sales market and onto the lettings market with people choosing to rent rather than committing to buy.



Any risk taking speculators who bought at the top of the market, hoping to turn for a quick profit, will start to feel the squeeze and be forced to sell cheap or with little or no profit.



The best properties will not be part of this bunch as anyone who paid through the nose to secure the best did so knowing that they will be there for the long term.



Earlier this week we advised an old client, who was bidding on a property through another agent, that the difference between paying £10m or £12m will be irrelevant in 15 years time so buy it if you love it!!