While many people believe that the London housing market is in a buoyant mood, there have been some indicators that there is a level of uncertainty in the property market in the English capital. The latest issue that has come to light revolves around the decision made by the development firm, Urban Exposure, who have decided to withdraw their planned IPO, which was said to come with a value of £500m.
The firm has developed an excellent reputation for financing a number of major residential developments in the English capital. The fact that Urban Exposure has pulled out of such a major project comes hot on the heels of the news that another real estate firm has pulled out of a major financial project. Clipstone binned plans for a £140m listing with the company citing a seasonal slowdown in the market.
While this is an understandable reason to opt of a major financial undertaking, the fact that the firm cites a seasonal issue means that it shouldn’t have been classed as a surprise.
Seasonal issues happen at the same time on an annual bad us, which means that the firm should have taken this into account when they raised their initial financial plans.
The fact that the company has since cited this as being a reading so late in the day indicates that it may be an excuse that the company is hiding behind. Being economical with the truth is a common occurrence in the business world, so this is far from being the only time a firm has provided an excuse that doesn’t quite tally up with the real reason behind a business decision.
It is not as though it is only British firms that have suffered from changes in the market, a number of European firms have suffered due to the same problems. However, there are a greater number of problems in London that will arise in the near future.
Election may impact on London property prices
One of the biggest issues facing the London property market is the election that is scheduled to take place in 2015. There is a great deal of people waiting to see what happens in London around the election and there is a feeling that the property market slows down in advance of a General Election.
There is also a lot of talk and discussion from the Labour Party who have raised the possibility of increasing a high level of tax, dubbed a mansion tax, and this has impacted on the level of investor confidence. With such a level of uncertainty regarding the London property market in the next year or two, it is easy to see that a firm that is looking to have an impact within four to five years will have a level of uncertainty about their investment with so many potential changes in the market.
There has already been a slowdown in the rise of property prices in London, and this has caused many industry experts to think that there has been a change in the market. However, there is no doubt that there is still a high level of demand for properties in the English capital. This means that surveyors in London are still experiencing a high level of demand, but there is an increasing need for the survey to be as thorough as possible.
This should always be the case when it comes to surveying London property, but with so much money at stake, it is understandable that everyone involved with the process wants everything to be spot on.
Whether it is potential buyers and sellers looking to find the best value for a property or a buyer looking to ensure they receive tremendous value when it comes to snapping up a London property, there is no getting away from the fact that surveyors play an integral role in the UK property market.
It may be the findings of a London surveyor is the difference between a property sale going ahead or not. It may be that the findings of the surveyor will save a lot of heartache caused by paying over the odds for a poor quality property. Conversely, the findings of the professional surveyor may enable a current property owner to realise the true value of their home, giving them abetted chance of finding a new property that is perfect for their needs.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 8 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.