London Market Comment Autumn / Winter 2011
We recently heard a leading residential estate agent talking to a purchaser and referring to the London property market as ‘interesting’! It was a throwaway line if we have ever heard one.
The fact is agents are battling more than ever to obtain quality stock, knowing full well that once on their books they will sell, and more importantly they will sell well!
Overall, the prime London market has seen a sharp fall in quality instructions compared to last year, and to add insult to injury, aggressive agency practice has led to inflated asking figures from less than motivated vendors.
So where does this leave purchasers?
Well, with the uncertainty from the financial markets forecast for the foreseeable future, and interest rates set to continue to stay relatively low for the next 6 months at least, the ultimate frustration continues to lie with motivated able buyers.
The truth is that the overseas investors have played a significant role in dominating the market for the third year in succession. However, time will tell on how prolific this interest remains in light of the recent global financial stresses. Foreign currency, whilst slightly weakened, still appears to be dominant over domestic currencies and whilst that continues the window of opportunity is still open in London.
Equally the domestic market including both private and investment purchasers are joining in the competition. Some private buyers have taken the leap, in spite of the escalating 8% to 10% average moving costs, to realise their equity and domestic cash investors have started speculating in the absence of other financial investment opportunities.
With this much one sided action, it really is only the robust, motivated and well informed purchasers who will win the day! That is why Stacks Property Search and Acquisition, and the services that we provide to our clients, is so essential in this market. Our clients repeatedly realise our contribution and value as retained buying agents. As a company we pride ourselves in our well-earned market relationship with London agents, which in itself, has played an enormous part in sourcing and securing properties over the last few years. Accessibility to brand new instructions and dedicated and constructive monitoring of excess, overpriced property has helped us position our clients at all levels of the market, in spite of the constant third party influences and market indicators.
There are speculators that whisper ‘a change in the air’ for this market but for the meantime, whilst there is fear and confusion, we see opportunities. It’s knowing where to look.
If you are relocating or investing in the London, we can help you find the perfect property.
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