West Hampstead Housing Market Has Seen 5% Rise Since 2007 Peak

The UK housing market will see a gradual recovery during 2012, according to the National Association of Estate Agents (NAEA)NAEA chief executive Peter Bolton King said 2012 believes that some people have been quick to be overly gloomy about the housing sector’s prospects in the next 12 months but was also keen to stress that, in contrast, things won’t blossom overnight either.

Indeed, he feels that home purchases will be at similar levels to this year but house values will increase on a gradual basis.However, he feels that lenders need to do more to drive the market for first time buyers as currently a lack of available finance means that people are finding it increasingly difficult to get a foot on the property ladder.

"Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies,” Mr Bolton King stated.“Clearly, when the Stamp Duty holiday disappears in the second quarter of 2012 it will become even more difficult for first time buyers to access the market."

He also believes that regional variations will lead to what he terms ‘micro-markets’ across the country. This is where demand for property in some districts maintains a healthy market but creates a division from lesser desirable areas, which are left behind.

He added: "Pressure for housing will increase in London and the South East throughout 2012. The top end of this market will also remain very resilient, and we believe that purchases from overseas investors will continue apace.

"Confidence in 2012 will be a key factor and this, to some extent, will be driven by the media." David Warren, senior sales negotiator at Paramount commented: “The West Hampstead housing market has been consistent since 2009 after the slow down at the end 2007/2008 and prices recovered fully in 2010. We have now seen prices raise by a further five per cent from the peak prices in August 2007.
"The local area is only affected slightly by the first time buyer Stamp Duty holiday as only studios and the odd one bedroom flat will get into this bracket but we can definitely see where the rest of the UK will suffer with no stamp duty holiday and FTB finding it hard to get deposits together and mortgages agreed”

Recently, the Building Societies Association (BSA) stated that consumer confidence is returning to the housing market and more people will be looking to purchase a property in next year than in 2011.

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