Could now be the time to seek London properties?

Could now be the time to seek London properties?

One of the most important parts of investing in property in the UK is making sure that you get your timing right. Buying a home when prices are rising quickly can mean you end up paying more than you intended, but purchasing at a time when the market is strong, but prices are slowing, can be a shrewd move.

In recent weeks, it has been reported that the London property market is likely to see house price rises starting to cool off as of next year. This is because they have already increased so quickly this year. However, the long-term future for the sector still looks bright, and with this cooling off period seemingly having already started, those with the bigger picture in mind might well look at getting themselves onto the property ladder now. 

The latest London Property Monitor from Marsh & Parsons has shown that in the last quarter, property prices climbed by 0.5 per cent in the capital. While this is still a move in the right direction, showing potential investors that the market continues to be healthy, it was a lower rate of increase than the 3.1 per cent that was experienced in quarter two this year. 

One of the main reasons for the falling rate of increase, the report added, is that the supply and demand issue has been addressed somewhat and eased in the past three months. While buyers have faced high levels of competition in recent times, meaning they often need to bid far higher than the asking price the number of potential buyers per home fell to 12 in the last quarter. 

This fall was brought on by the fact that the number of homes for sale grew by a not insignificant 13 per cent in the same period. 

"We’ve reached a plateau in the course of house price growth, and the path paved out for London property prices for the rest of 2014 looks to be levelling off. This isn’t terminal, but just a necessary pit stop in the long term growth and sustainability of the market," said Peter Rollings, chief executive officer of Marsh & Parsons, showing how even though there is a slowing in price rises at the moment, the future still looks good for the sector.