Musings of a London Property Search Agent.
London is bearing up well as the gap between asking prices and purchase prices continues to widen, according to new research published yesterday by the RICS. Vendors are accepting an average of 9% below asking, with vendors in the North East accepting the most, 12.5% below.
Scottish vendors are accepting 2.4% less, which appears less than it does for a country where prices are normally advertised as ‘offers over’ and once an offer is made it cannot be rescinded. We have thought Scottish prices have been over-heated for some time, given the limited employment market and long-term demand.
Simon Rubinsohn, RICS chief economist commented:
€œWith housing transactions currently at a 30 year low, many vendors are being forced to lower their asking prices to achieve a sale in an ever shrinking market or they are being forced to rent their property until the market picks up.
In recent surveys, Chartered Surveyors have reported that some buy-to-let investors are re-entering the market to take advantage of rising yields.
In addition, €˜predatory buyers€™ have been hovering over the corpse of a stalling market with many others cut out by the lack of mortgage liquidity.
The gap between asking prices and selling prices could widen in the coming months as the downturn in the economy becomes more visible.
The London market could be adversely affected as employment in the financial sector drops off.€ The advice of this London Propeerty Finder is to buy now before it is too late.
Tags: Buy-to-let, House Prices, London House Prices, London property, London Property Finder, London property market, London property prices, mortgage liquidity, North East property market, North East property prices, Scottish house prices, Scottish Property