Property prices continue to fall

Another dark day for the Stock Exchange throughout Europe. But the headlines are once again concerned with dropping house prices: “home sales fell to their lowest level in 30 years last month as the seizure in the mortgage market continued to drag house prices down”, says The Times online. London trembles. This represents a drop by approximately 60 percent over the past year, at a rate of 1.7 percent for June alone this year, according to a recent survey conducted by Knight Frank. So is this good news or bad news for your business you may ask… Well, this trend has obviously affected the letting costs for office space and as a result, the City of London currently has a 6.7 percent vacancy rate. However it may surprise you to know that there has been a 14 percent rise in lettings in the West End. With our LondonPresence W1 office, such matters are our concern – not yours (unless of course property is your business!).

But what can we do? If you’re looking to purchase in London should you wait? Thinking about selling?- How difficult is it really? It’s a tough time for all of us, especially for those of us in London. The stagnant market is symptomatic of a broader lack of confidence in the economy and of course it’s not just the property market that is being affected by the current crisis. “Asian stocks stage widespread decline,” marks The Financial Times. Inflation climbs to 3.8% from June, reports the BBC website. Bankers and traders work warily and such trepidation is now typical of every sector. Consumer spending is also showing signs of slowing down; sales in shops for June were down 0.4 percent compared with the same period in 2007. Everyday the Bank of England is trying to balance the growing evidence of an economic slowdown against the problem of rising inflation. Recently it has held interest rates at 5%, an expected position to try to save our economy from the risk of recession. Even drinks sales in pubs across London have declined!

There’s no doubt it’s a frighteningly worrying time and it’s a tough time to be managing a business that’s for sure! By having a virtual office in the current property climate, you’re relieving at least some of the pressure from this potentially imminent recession- and trust us, every little helps!