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 Buyers Agent

Am I the only one to have noticed that across London the only ‘good’ flats which stay on the market for any length of time these days are ‘garden flats’, be that basement, sorry, ‘lower ground’ or ‘garden’ level, ground or upper ground floors?  Well maybe so, but if any readers are seeking outside space this summer and don’t mind or even relish the thought of living ‘below stairs’, then you should be negotiating very hard indeed!

At this time of year, estate agents talk up any outside space at all, or at least most of the good ones do.  That said, I recently showed some Clients a top floor flat with a fabulous balcony, conveniently off the open plan kitchen/lounge diner and big enough for a table and chairs for 2 - or 4 with a small table.  And when we arrived the doors were wide open.  After all, who is going to burgle you if you are 3 floors up?

A downside of the flat was it was built for the vertically challenged, possibly a little harsh, but with the existing configuration, a shower would be a struggle for anyone over 5′6.  But I digress. 

Most well-priced flats on the first floor or above are selling quickly.  It is only the burglary-sensitive ones which are lingering and a lingering flat essentially means a bargain - garden or not!  And there are loads of them, in every corner of London and Brighton at the moment.  So forget the estate agents guff and get bargaining, or leave it to the experts and hire a fabulous London Buyers Agent instead!

Technorati Tags: Brighton, Buyers Agent, garden flats, London Buyer's Agent, London garden flats

Tags: Brighton, Buyers Agent, garden flats, London Buyer's Agent, London garden flats

Musings of a London Buyers Agent

After  a year or so of mortgages being pulled from the market, the Nationwide has brought back the 125% mortgage for buyers who are trapped by negative equity.  This group of buyers would be unable to move without the new mortgage but it strikes us that this is the least likely group of home buyers who should be entitled to such significant borrowings.  After all, they hardly have a good track record if they are already in negative equity.

However lately we’ve been thinking that the real losers are canny cautious buyers who settle for properties in need of a little work or repossessions or distressed sales, available at a bargain price.   We have represented both first-time-buyers and new investment buyers who haven ‘t got much of a deposit but who would really have benefitted from the 125% mortgage and would also be relatively low-risk buyers. 

The Clients I am thinking of have bought good value property at excellent prices and in some cases below the true market value and need additional funds for renovations, or a lease extension, both of which would add immediate value and saleability. 

However following the boom years, most mortgage companies nolonger have any appetite for this type of lending.  Clearly, some people borrowed more than they could ever repay.  Also agents and mortgage brokers flipped property and finance deals, so that in reality the owners put down very little or no cash other than a brokers fee.  In cases where the valuations were too high, the mortgagors were left high and dry when the housing market crashed. 

The thing is, why on earth does it make sense to lend 125% with a track record of getting into negative equity?  There is no way a commercial lender would do this.  Although not a Conservative by nature, my parents words of wisdom are ringing in my ears - is it time to return to a tory spending regime?  If this new scheme from Nationwide is anything to go by - I rather think so.

PS If you need a Buyers Agent who will give you an honest valuation and justify it and tell you if the market is overheated (as it is now in many parts of London), you know our number!

Technorati Tags: 125% mortgage, Buyers agents, First time buyers, homebuyers, housing market crash, London Buyer's Agent, overheated market

Tags: 125% mortgage, Buyers agents, First time buyers, homebuyers, housing market crash, London Buyer's Agent, overheated market