Last month I blogged about the state of the market – you can read it here. It was all about London.

My latest edition of Property Data has arrived and it’s a familiar story – as you can see from the graph below. The market is better than the same period in 2011, but not quite as good as 2010 – in terms of volumes.

But once again the skew towards London is marked:

So it doesn’t really tell us much of a story. The only real difference from last month was the fundamental shift in the average net yield – it has shifted to 7%. This is a real weakening of the trend that had seen a steady improvement. In my example last month – had you used the initial average yield to value your £100,000 income (worth £1.602m a year ago) the value today would be £1.43m. These are averages and don’t really mean very much!

Locally I think we are as busy as we have ever been. I have a number of properties under offer (both buying and selling) and I seem to be looking at lots of opportunities. The latter can be quite speculative – but that is quite a good sign.

I am reasonably upbeat about 2013 – even though deals are harder to do than ever.