March 2010

Since our report last month, it appears that hopes for an increase in stock levels across London have been only slightly satiated. Whilst February is traditionally the month when prospective vendors look to sell, this year few have done so.  Estate agents across London are still reporting high volumes of buyers registering; a large proportion of whom are foreign investors. This, coupled with interest rates and therefore Standard Variable Rates still being low, and equally a lack of choice for an onward move is choking the supply to the market.

Whilst buyers are having to be understandably cautious, due largely to vendors asking high prices and speculating the market. There are still many instances of ‘sealed bids’ and even ‘gazumping’ across London.  Agents are cautious however as to how much this will increase prices- most suggest 5%-10% maximum by the end of the year as the prices become less tempting for the foreign buyers, and only those buyers with large deposits are able to obtain attractive mortgage rates.

The Bank of England has again held interest rates to encourage growth in other financial sectors of the country, which will hopefully encourage banks to become more competitive with their lending. Although this is unlikely to change radically in the near future, particularly with the looming general election.

We maintain the necessity of using a buying agent  in order to view properties as soon as they come on to the market, and to know what and how to offer. Stacks London has a well established network of contacts across the industry as well as the knowledge on how to negotiate on our clients behalf and put them in the strongest position to buy and to secure properties throughout this turbulent time.

If you have any questions or would like any information about our services, please do not hesitate to contact Adam Keville or Sara Ransom on 020 7385 4101 or London@Stacks.co.uk