Supplied by the Land Registry

Musings of a London Property Buyers Agent

The monthly house price index, published by the Land Registry has shown that London house prices jumped 2% in June, with pricing in the rest of the country broadly stable. 

Prices in Hackney increased by 2.7%, the highest increase, whilst those in Newham suffered most, posting a decrease of 2.7%.  Prices in Westminster, home to Belgravia, Mayfair, Marylebone and parts of Notting Hill were flat, dropping .2% since May. 

Prices in the Royal Borough of Kensington and Chelsea however followed the trend, increasing by 1.8% in a month.

To put these amounts into context, they are similar to the monthly increases we saw in 2007, although almost every borough posted house price increases then.  These new statistics mean that London prices are now down by just less than 15% since their peak.  Prices in the South East are now approximately 82.5% of those acheived at the top of the market.

There is no data on volumes of sales since the market turned in May, but we would expect an increase in activity from anecdotal evidence, hampered by a lack of stock on the market.

All in all this survey doesn’t provide much of a surprise but acknowledges what we have seen in the market and confirms the data provided by other house price indices.  Regular readers will be aware that we rely mostly on the Land Registry data, as it is based on actual sold prices so takes account of gazundering/gazumping post offer and down-valuations imposed by surveyors, unlike indices produced by most other bodies.

First time buyers should not feel too disheartened as we suspect there will be a downturn at the end of this year but the considerable jump in values in London shows that there is considerable appetite for London property and with stock very limited, I suspect this London trend will continue, albeit with significantly lower incremental changes.

Prices across England and Wales as a whole are stable, with only a 0.1% increase in June.  For more information please don’t hesitate to call us, the London Property Buyers Agents on 020 7923 7564.

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Tags: Buyers agents, London Buyer's Agents, London Property Buyers Agent, London Property Buyers Agents, property buyers agents

Musings of a team of London Property Buyers Agents

Normally at this time of year, London Property Buyers Agents are bemoaning the summer lull and wishing everyone would hurry up and get back from holiday so that we can show our Clients the fabulous properties we have found for them.  Estate Agents have similar feelings, often suffering from lack of stock and struggling to get their buyers out of the sun and down to viewings.  Indeed, post heatwave, many estate agents had a slow week, while the London populace basked in the misplaced belief that the summer sun was here to stay after years of horrid weather.  But after a week of rain, everyone remembered why people go abroad for their holidays and got back on the property hunt.

Now the schools are out we would expect things to quieten down again, but estate agents are reporting an influx of new buyers.  Cluttons says it has had a 75% increase in buyer registrations compared with this time a year ago, and a 35% rise since May.   Rightmove have also said that a record number of people are continuing to download property details using their site and that summer traffic to date has amounted to 97% of Spring levels, compared with 79% last year – see here for more.

Having forecast a surge in property for sale late in the summer a few weeks ago, Cluttons seem to have back-tracked, describing the London property market as ‘deluged’ with buyers. 

Speaking to Estate Agent Today, Residential Partner James Hyman said, €œWe are seeing the complete opposite of a summer slowdown this year, as buyers start to panic that they have missed the chance to buy at the lowest prices. There is a huge pent-up demand, with buyers having waited for the last 18 months for the market to bottom.

€œOnly the lack of stock is currently preventing activity in the Central London market from returning to 2007 levels.€

He added that selling up to rent is no-longer popular with buyers, fearful of selling for less than they have to pay in a few months time. 

As for us, we’re sticking to our guns that this Winter should be a good time to pick up the odd bargain and as for a return to 2007, well I would suggest that the lack of supply is exactly what is bolstering the market.  If vendors suddenly swamp the market which I still think is unlikely this year, the market will return to the early nineties nightmare.  Everyone is talking the market up at the moment and that may continue until after the election. 

Re the long term outlook for the property market,  eventually the government debt will have to be paid back and interest rates will have to rise again and those who have been lulled into a false sense of security on low interest or interest only loans will get a sharp shock.  If the market is back to booming by that point, the government are unlikely to be as concerned about repossessions as they have been this time.

However in our view as London Property Buyers Agents, it’s always possible to bag a bargain, you just need to know where to look!

Technorati Tags: Buyers agents, London Buyer's Agent, London Buyer's Agents, London House Prices, London Property Buyers Agent, London Property Buyers Agents, London property market

Tags: Buyers agents, London Buyer's Agent, London Buyer's Agents, London House Prices, London Property Buyers Agent, London Property Buyers Agents, London property market

Musings of a London Property Buyers Agent

Last year, a Bristol property developer failed to sell his latest £1 million house, even after reducing the price by £300,000 so he joined the swathes of developers, selling gimmicks with their overpriced homes, by offering a second hand Ferrari to the buyer.  Valuing the Ferrari at £100,000, he bought it specifically to entice buyers to offer, but after nine months on the market and huge local publicity in the Bristol Evening Post, the house has failed to sell.

Maybe it’s just because we’re based in London, but I would suggest that most people owning million pound property aren’t interested in Ferraris, but being more flash than class, the developer seems to be tarring all buyers of neo-Georgian property with the same brush!

But I digress.  To add insult to injury, we just priced a red Ferrari F430 Coupe with a 2005 plate and according to Parkers Guide, similar cars are on sale for £80K and £90K.  Which begs the question, if he is marketing an £80K car for £100K, does that mean his £1million pound house is only worth £800K?  Or less?

Credibility gone I think!

If you want to buy a million pound house which is worth £1million or more, come and talk to your favourite London Property Buyers Agents.  (That’s us), in case you had forgotten.

Technorati Tags: Buyers agents, Gimmicks, London Buyer's Agents, London Property Buyers Agents, Property sales gimmicks

Tags: Buyers agents, Gimmicks, London Buyer's Agents, London Property Buyers Agents, Property sales gimmicks