This is a common question that I am asked by Buyers and Sellers alike.

When a client is considering a sale of their flat/house, an important consideration in determining whether the moment is right to sell/buy a property will be based upon the future expectations of value. There will always be circumstances where a client is relocating abroad, has to sell to release capital for another investment or alternatively is either upsizing or downsizing. Determining the exact moment to place a property on the market can in some instances make the difference of many thousands of pounds, as sentiment is invariably driven by economic conditions at the decision point to press the marketing button.

From 2009 to the end of 2011, we have witnessed a surge in capital values throughout the Royal Borough of Kensington & Chelsea. There are very few estate agents that have been able to forecast how quickly property values have adjusted to the realisation that London is now considered to be THE safe haven for foreign investment.

Activity at the beginning of 2012 has started slowly after a particularly strong end to 2011. The level of new instructions continues to be low and I consider this to be the basis for London property prices continuing to have a very firm foundation. Austerity measures in some continental countries will impact the buying potential during 2012 of our overseas contingent. I consider this single point to impact upon further increases during 2012 with price rises restricted to less than 5% during the course of the year.

The majority of our Buyers are sitting on vast gains if they have acquired property in the last four years, but as continental purchasers take a much longer view with property acquisitions than the typical Banker bonus fuelled purchases of a few years ago, I doubt that there will be any need or rush to crystallise these profits. Kensington and Chelsea is a beautiful Borough with extremely limited development potential, which not only safeguards the beauty of the Borough, but also guarantees that stock levels will remain extremely limited. Trophy homes are acquired and quite often left unoccupied for long periods of time with owners safely assured of ever-increasing capital value.

With my prediction of growth of 5% over the course of the remainder of 2012 in Kensington and Chelsea, Sellers can be comfortable that in the short term they may be able to consider using their sale proceeds to a short-term better advantage. Buyers can also rest easy that their initial taxation costs of acquiring their investment will be covered by this forecast rise and they will be well placed when the economic activity picks up.