There are 30 per cent fewer highly saleable houses coming to the market in London compared to this time last year. This is a result of concerns over the economy and jobs, people having no other place to put their money and expectations of price increases in the £1-2m price bracket.
Some who are looking to move out of London are renting out their houses and renting in the country, further exacerbating the lack of stock.
In contrast, demand from domestic and international buyers is constant and sealed bids are now commonplace for the best quality homes.
Pension changes are having a long-term effect on the property market, with many now viewing it as a better long-term bet. Diminishing pensions are also a blow for future first time buyers and the bank of mum and dad may well find they can’t afford to help first-time buyers in the way they have in the past.