“A further 0.3% contraction of the UK economy confirms without any doubt that 2012 was a year of feeble growth. Markit CPIS PMI for services also showed a disappointing downturn in output for December (48.7), but we forecast GDP to rise by close to 0.7% this year as we see a slow return to economic growth.
“This will certainly have an impact on the capital’s housing market as the key financial services sector enters a period of cooling and bonuses are scarcer. However, the underlying buyer demand in London remains robust, with the number of registered buyers during the first 15 days of 2013 equaling the 2012 total over the whole of January and expected to continue on an upwards path.
“Our data shows the proportion of mortgaged buyers doubled in the last year across prime Central London, while the number of cash buyers dropped by over a fifth, in part due to the cautious bonus environment and the increase in the availability of mortgages due to the Funding for Lending Scheme.”
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Source: Cluttons |
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The Wriglesworth Consultancy 