Musings of a London Property Search Agent

Further to our blog on Friday, Simon Agace, head of Winkworths Estate Agents has suggested to Citywire that bar new-build flats, we may be at the bottom of the market with an increase in activity in the second half of this year.

Our view has been that while many home owners will stay put rather than sell for a significantly lower price than their neighbours did last year, we know that we can successfully offer significantly below asking price.  

A number of our clients have asked why that is, since according to the Land Registry, prices are stable but we can still chip significant chunks off the asking price.

Some people won’t sell at a low price, even if they have found another property to move to which is also significantly below the perceived market value. Why? Because an Englishperson’s home is his or her castle. Buying it was an emotional decision. In some cases selling it is too. And people don’t like the loss of face involved in selling their house which is of course bigger/sexier/both of the above, for less than the one up the road.  This London Property Search Agent can help to find the path to the front door of a new home at the best price.
 

But some will. And some people have to. And some will be persuaded to, by the media, by their estate agents and by people like us who are determined to get the best bargain possible for our clients.
 

We still see Estate Agents over-valuing property in our opinion, in which case reductions should be negotiated. We also keep in touch with people who talk to us and then don’t use us and you know what? We regularly pay a bit more than they needed to for their new homes. But then they don’t think about property 24 hours a day do they? You have been warned!

Technorati Tags: House Prices, House prices in London, Negotiating Prices

Tags: House Prices, House prices in London, Negotiating Prices

Musings of a London Property Search Agent

April statistics from the Land Registry House Price Index were published today and showed that London house prices have fallen for the third consecutive month, dropping half a percent versus March.  However there was also good news.

Firstly, average London house prices are still 6.4% higher than they were in April last year.

Secondly the December slide in average London prices of 0.003% which represented a £10 drop on the average London house price is now recorded as an increase of 0.068% which represents a jump of £240 on the average house price.

Why do the figures change? The blame can be laid fairly and squarely at slow legal practitioners. Usually house sales are registered within 4 weeks of the sale, hence the lag in Land Registry house price data versus indices such as the Halifax or Nationwide. Some sales are always registered late and it is these sales which make the difference as the index is updated to take account of late registrations.

The April data shows that London house prices dropped 0.33% in February, 0.48% in March and 0.53% in April. Is this a sure sign of the house price crash, recession and general gloom and doom? Not necessarily. To put these figures into context, the total drop in prices amounts to -1.35%. But London house prices rose 3.74% between August 2007 and January of this year, so since the credit crunch started, prices are up 2.39%. And prices are still 6.4% higher than a year ago.

The percentage of high loan to value mortgages are nothing like as high as the early 90s, so sellers are sticking firm on prices and buyers are having to rely on auctions, repossessions and people like us to sniff out the bargains. In our opinion the London housing market is far too robust to play a major part in any house price crash.  If you want help to find the right place at the right price then look no further than this London Property Search Agent.

Technorati Tags: Average London house prices, House prices in London, london house prices rise, London Property Search Agent, Prices rise in London

Tags: Average London house prices, House prices in London, london house prices rise, London Property Search Agent, Prices rise in London

Musings of a London Property Search Agent

Nationwide issued their monthly house price data today which showed that average UK house prices fell 2.5% during May, the biggest monthly drop in the history of the index which first recorded UK house prices in January 1991.

We are reserving judgement until we see the Land Registry statistics. Agreed sale prices for April will be released tomorrow and prices for May will be released at the end of June. As a company, we use the Land Registry figures as our primary market indicator because they are based on actual sold prices, so statistical trends are unaffected by sales which do not reach completion. Nationwide base their data on their own mortgage lending post-survey, so for example purchases made by cash buyers, who are one of the most active groups in the current marketplace, particularly in London and the South East, are not included.

We would expect house prices for London and the South East to outperform the rest of the country, but Nationwide only publish regional data on a quarterly basis and unlike the index issued by the Land Registry, the data is not area specific.

With respect to London and the South East, the index showed steady growth quarter on quarter throughout last year, including Q4 following the start of the credit crunch. The index reported a drop of 2.3% for Q1 2008 versus Q4 2007 for London and marginally smaller drops for the South East.

This London Property Search Agent is here to help  you find the right price.

Technorati Tags: House prices in London, London House Prices, London prices fall, London Property Search Agent, South East House Prices

Tags: House prices in London, London House Prices, London prices fall, London Property Search Agent, South East House Prices