With the most intensive part of the recession and credit crunch now seemingly overcome at a national level, the London property market is showing a signs of economic recovery, as the last quarter of 2009 saw increased confidence in sales. Houses for sale have been coming onto the market at a much greater pace, with vendors realising that sales are becoming both more profitable and turning over more efficiently

Statistics from leading London estate agents suggests that the number of buyers registering with agencies has risen dramatically by almost 70% from this time last year, lending some verification to the increased confidence of theLondon propertiesmarket. Furthermore, there has been an 80% rise in agreed sales over the same period.

We can explain this trend due to the greater willingness of banks to allow mortgage-lending. In addition, there has been a downward trend of abortive sales to a five-year low, indicating confidence in transactions and security-lending.

The London rental market has contracted after an upsurge in activity during the final summer months. Available stock has decreased by 13%, though some attribute this to the decline in the phenomenon of the ‘accidental landlord,’ whereby owners who wished to sell decided to put theirhouses for rentdue to a lack of sales activity. However, with a recovery in the London sales market, increased demand for properties for sale means that these accidental landlords are now selling up.

In any case, demand for rental property continues to rise- around 20% higher than this time last year, and so in areas where stock is in short supply, there are signs that rental rates are starting to increase. Landlords as are therefore recommended to take advantage of these favourable market conditions.

Generally opinions are that the London market is an indicator of how the market locally will perform in the forthcoming months. Bournemouth therefore should show improvement in early 2010.