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

Miles Shipside, the Commerical Director of property portal Rightmove has called the bottom of the market as last winter on the basis that property prices dropped by 2% a month in the second half of last year, whereas house prices have been increasing by 1% a month this Spring and Summer.  But that is precisely why the argument over seasonally adjusted vs non-seasonally adjusted house price indices runs and runs.  The Spring and early Summer markets are always busy – or at least busier in any kind of reasonable market – 2008 being the exception to the rule.

That is why all the main house price indices issue seasonally adjusted and sometimes non-seasonally adjusted house prices: to take into account the traditional Spring/Summer surge.  I will be incredulous if house prices don’t dip again slightly this Winter.  Canny sellers will put prices up just now because there has been confidence in the market for at least 2 months – driven predominantly by lots of buyers chasing a small number of properties.  The shortage in stock boosts the chances of several people wanting the same property, which is the best way to achieve a good price these days.

According to Rightmove, they are seeing an average of 21,364 new sellers a week at the moment, only 61% of the usual number.  According to the Land Registry the first few months of this year saw an average of 31,000 property transactions a month.  This is a huge drop from 120,000 in 2007 and the historic norm of around 86,000 a month and we know from anecdotal evidence that there are alot of keen buyers out there.

Shipside might well be right, as we have already said a number of times this year – there were some good bargains this spring in our view.  But at the end of the day, there are always bargains around, even in 2007 when prices were at their peak.  It’s just a matter of tracking them down!  If you don’t have the time, contacts or know-how – consider using effective property buyers agents – like us for example!

Technorati Tags: London House Prices, London Property Buyers Agents, property buyers agents, property search agents, relocation agents

Tags: London House Prices, London Property Buyers Agents, property buyers agents, property search agents, relocation agents

Musings of a London Property Finder

The RICS (Royal Institute of Chartered Surveyors) have supported our anecdotal musings, stating that price expectations for London over the next six months are positive, given the lack of new instructions and burgeoning lists of wannabe-buyers.  In the RICS monthly house price survey published today, the Institute have declared that they expect house prices in London to rise for the first time in two years.

As we reported last month, the RICS statistics show that London house prices have been largely rising this year.  Their report also signals house price increases for the South West and that prices will remain flat in the South East overall.

The surveyors have made clear that price increases are due to a lack of supply, partly, as a result of the introduction of HIPs, as we have been saying for months.  They suggest that any significant increase in houses for sale is likely to lead to house price deflation once again, as they are currently reproting in the North and in the Midlands.  In fact it seems that there is a direct corelation between the areas where house prices show most growth and the areas where most property for sale.  Supply vs demand.  Simple really.

As for us, we’re sticking with our theory that the back end of this year will be a good time to buy.  Only time will tell whether we or the RICS are right, but if you want the right house at the right price – then this London Property Finder is probably one of the best house price anoraks around!

Technorati Tags: house price crash, London house price crash, London House Prices, London Property Finder, london property search

Tags: house price crash, London house price crash, London House Prices, London Property Finder, london property search