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

A disgruntled Leicester Estate Agent has placed an ad in a local newspaper, warning vendors and other agents of the underhand tactics of an investment purchaser, who tried to gazunder by dropping his offer at the last minute which meant a chain of three purchases fell apart.

According to Estate Agent Today, the advert reads: €œWe have had 3 house sales fall through this week due to the actions of SFS Investments of Barkby Road, Leicester. Be Warned!!!€

Michael Wolfe, a partner of Leicester Premier Estate Agents said, €œI was so upset for our vendors  when these clients reduced their prices, effectively pulling out of the sale.

€œOne of the clients has just had a baby, another one is heavily pregnant, and the other was already distressed at selling the family home following the death of her father.

€œThese €˜purchasers€™ are so emotionally detached from the buying process that they have no regard. They quite blatantly strung along these clients to the point where they had packed their belongings and were ready to move.€

He also criticised HIPs, adding, €œAs these particular clients have an in-house conveyancing arm and with HIPs putting the onus to provide all legal documentation on to the property owner, they are able to walk away from the transaction without having incurred a single penny in expense.”

We’ve seen a great deal in the press recently about the North South divide in respect of the recovery of the property market with reports that it’s still grim up North for anyone involved in property, but certainly in the South East, there seems to be less gazundering these days.  The market changed markedly between March and May of this year and after a slow start, as predicted, buyers are piling in concerned that they missed the bottom of the market. 
 
From our perspective as London Property Buyers Agents, while there is so little stock around, gazumping is more likely to happen than gazundering, particularly when buyers have negotiated a good deal and then can’t proceed quickly.  The moral of the story is get organised.  Send in a surveyor quickly, stick to your word and make sure the vendor sticks to theirs.  If it all goes pear-shaped, you could always name and shame!

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Tags: London Buyer's Agents, London Property Buyers Agent, London Property Buyers Agents