Supply and demand has been one of the biggest issues for the UK property market over the last year or so. As it has become easier to borrow mortgages, and more people have felt confident about purchasing homes, buyers have outnumbered sellers, causing the price of property to markedly rise over the past few years as competition pushes final sale values ever higher.
However, one arm of the market is starting to address this, as London's prime property sector has seen the volume of homes coming to market rise considerably. It said in the last six years, developers have been doing more to tackle the lack of supply, adding that this is something that's likely to improve further moving forward.
According to figures published by Pastor Real Estate this week, since 2009, the supply of housing stock in the prime central market has risen by 8.6 per cent, increasing four per cent faster than the inner city London boroughs in general.
This means that in the space of the last six years, the volume of homes in this market has increased by some 5,200. Further good news will be still to come in the months and years ahead as well, with some 7,000 homes in the pipeline in the prime market.
There are currently 277 development schemes in the pipeline, which will deliver 7,179 homes to the prime market, tripling the number of homes built in this area since 2009.
The report states an increase in supply has been important for the market in prime central London, especially as more and more people from overseas have been looking to invest in this sector since the fall of the market in 2008.
However, the fact that this drop in prices around the time of the recession also meant developers taking advantage of lower land values has meant that it has been possible for the property sector in prime central London to address the supply and demand issue.
So despite having issues with overpricing at times, could it be the case that prime central London ends up being the area of the UK property market that makes the best attempt at redressing the supply and demand issue that has inflated prices for some time? Only time will tell.