A place were conditions are 'really tough' is the London property
market at the moment.
Many traditional estate agency's have gone broke or have shut down
operations. Sales prices have come back to 2004/2005 levels which is
interesting.
What is also concerning, is that rents have dropped too. Many vendors
who couldn't sell their property, decided instead to get a tenant in
to help pay the mortgage.
With a heap of new property coming on the market for rent, the market
has become saturated and rents have also dropped back sharply.
London has always had an incredibly high proportion of its population
that are renters compared to say Melbourne.
So is this going to happen here?
It's highly unlikely.Vacancy rates have dropped again to now below 1%
in many parts of Melbourne. This is incredible, and working in London
before: I know they always tended to be well supplied with rental
properties.
We have a problem that is in fact, the other way around. We simply do
not have enough housing.
{snippet articles}