Musings of a London Property Search Agent

There seems to have been an upswing in talk of ‘green shoots’ in the property media recently and certainly some estate agents are talking more confidently than they were 6 months ago.  As Property Search Agents such as ourselves, we have been involved in the purchase of some superb bargains and advised Clients to walk away from over-priced homes, where someone else is prepared to pay significantly over the odds for homes which are frankly, not worth it.

So it was with interest that we read Rightmove’s latest house price index which was published today.  The data, which reports initial asking prices as opposed to purchase prices, shows that nationally, asking prices have risen since January.  Interestingly every region in England bar London shows average asking prices have increased between March and April, however London asking prices are down the least of any region year on year, falling just 4% since April 2008.  According to Rightmove, asking prices in the South East are down 7.6% year on year.

As we have said in pretty much every post on house prices though, the situation is very different in different boroughs.  The credit crunch seems to have completely by-passed many vendors in Kensington and Chelsea for instance: asking prices there are up 32% since last year according to Rightmove, which is completely unrealistic apart from truly superb houses.  That said, Property Search Agents are very common in those areas and I have certainly had offers accepted at 40% below the asking price in Chelsea, Kensington and Belgravia so it is all relative.

In Westminster, which includes Mayfair, Marylebone and parts of Kensington, Knightsbridge, Belgravia and Notting Hill,  asking prices are up 13% year on year.  Other boroughs boasting ambitious vendors are Harringey, Camden, Brent and Richmond.  Even in Islington, which was one of the first locations where Estate Agents really lost their nerve in 2007, asking prices have jumped 0.7% year on year.

So why the optimism in the Royal Borough?

Firstly, as I said above, offers 40% below the asking price are not unknown and may well be accepted if handled sensitively by a good negotiator or the vendor really needs to sell or they just want to get on with their lives or the property is ridiculously over-priced.

Boringly, this data is not seasonally adjusted and although anomalies are excluded, if vendors in certain areas routinely base their house price on 5% over what their neighbour’s house was advertised for, long-term trends can emerge, even if the prices are realistic.

Thirdly, there are certainly buyers out there who are paying well over the odds for property.  In our experience, overseas buyers leap immediately to mind, as for those buying in a currency other than sterling, property has been significantly discounted given the collapse of sterling.  And guess what?  Kensington and Chelsea is a favourite for the well-heeled, if not well-advised overseas buyer. 

If you need a canny Property Search Agent who knows Kensington and Chelsea, we would be happy to oblige!

Technorati Tags: bargain property in Kensington and Chelsea, House Prices, Kensington and Chelsea Property Prices, Kensington and Chelsea Property Search Agent, London House Prices, London Property Search Agent

Tags: bargain property in Kensington and Chelsea, House Prices, Kensington and Chelsea Property Prices, Kensington and Chelsea Property Search Agent, London House Prices, London Property Search Agent

Musings of a London Property Search Agent

The silver lining of the credit crunch / recession/ economic crisis for homeowners, or at least mortgagors has to be the low interest rates we are all enjoying at the moment.  Predictably the Bank of England’s Monetary Policy Committee has voted to maintain interest rates at 0.5% leaving those on tracker and variable rate mortgages quids in.  At least until rates jump again – which many have predicted to be next year.  If you are ready to buy then contact the London property Search Agent

Technorati Tags: Interest Rates, London Property Search Agent, tracker mortgages, variable ratemortgages

Tags: Interest Rates, London Property Search Agent, tracker mortgages, variable ratemortgages

Musings of a London Property Search Agent

The news that HSBC is to make available £1 billion pounds to help first-time buyers onto the property ladder was initially welcomed with derision by some of the more cynical members of our team.  At a time when tracker and standard variable rate mortgagors are paying 2% or less, the new HSBC loans will incur interest rates of 4.99% for those prepared to stump up a hefty £1,499 admin fee and 5.49%  for those who prefer a smaller fee.

However, given the amount of lending proposed and that the bank is prepared to lend up to 90% of the value of a property this should be helpful to first time buyers hungry for a property bargain this year.  It will also help first-time buyers vye with investors to prop up the bottom of the market.

As property search agents, most of our work is at the other end of the property ladder, however we occasionally help first-time buyers find their dream home and purchase astutely.  Our Clients have not had trouble finding a mortgage, but all have had size-able deposits.  They have also tried to borrow the maximum they could, assuming this years bonus or next years pay rise would pay for any increase in mortgage payments.  and frankly, I can understand that feeling.  i mean it’s just too tempting isn’t it, when an extra £20K can buy you an extra bedroom, a better street or maybe just an extra few square feet.  It’s worth it isn’t it?  After all, how many people do you know with £20,000  on their credit cards.  Lets face it – it’s not unknown.

So maybe these rates are actually a blessing in disguise for first time-buyers.  Many financial wizards are predicting a return to double digit interest rates next year and all of them are predicting significant rises, if not 10%+.  In this economic climate, although harsh, maybe these high interest rates for first-time buyers are a good thing – preparing them for what’s to come.  The good news is that where HSBC leads, others will surely follow if they haven’t already.  Perhaps the best advice would be for us all to fix now while we can, in preparation for the rocky road ahead.  But note that we are London Property Search Agents – not mortgage advisers!

Technorati Tags: first time buyer mortgages, First time buyers, Interest Rates, London Property Search Agent

Tags: first time buyer mortgages, First time buyers, Interest Rates, London Property Search Agent