London and UK
Property Market – 2012
There was going to be no escaping the Sovereign Debt crises in Europe, as we have been saying on these pages for over 2 years now. And many others have said it too, which is why the financial markets stay relatively steady.
And the UK property market remains very steady. Prices are falling fraction by fraction, but property remains a relatively safe haven. From a buyers point of view, vendors have absolutely no excuses for asking excessive prices now. Vendors, please, please, please no more silly asking prices. If you have had your house on the market for a while and nobody is even coming to have a look at it, you have got to face up to the fact that it is probably over-valued. Speak to your local agents.
There are real issues about supply – both over-supply and lack of supply. We have been surprised by the lack of new stock so far this year. At the upper-middle end of the market, it’s very tight. There is not alot of property available, but buyers should not be over-enthusiastic – paying over the odds at the moment is neither clever nor necessary. Lower down the market, sellers are starting to outstrip applicants and buyers. However, finally, a trickle of the Quantitive Easing cash seems to be making it’s way through – buyers are finding it a little easier to secure mortgages with reasonable rates and terms.
There has been a real divide between London and the rest of the country, but that is narrowing. London will see continued foreign investment from different sources and at different scales, so well may be wider than just Prime Central. Domestic activity should strengthen.
We are seeing continued activity in the country over the Winter. There is money from property sales and bonuses coming out of London and making it’s way into the Country. As usual, the M3/M4/M40 corridors and the West Country are strong. I see no dwindling in demand for quality Country property. And we have already bought some beautiful properties on behalf of clients in 2012. But stock remains very low in many parts.
Markets are about people, and people have to move house – there are now over 2.5 million properties that might have been expected to change hands over the last 4 or 5 years, which haven’t. Mainly because they haven’t come to the market.
A great many houses are potentially for sale, but not on the market, and there are unlikely to be as many properties openly available for sale as people expect.
However, the suspension of HIPS’s has allowed agents to go back to the time-honoured practice of ‘marketing quietly’ e.g . seeing what interest there may be in a property, without going to the expense of marketing and brochures.
The clever vendors are aggressively marketing their houses with good agents at the right price – a keen, competitive, fair and reasonable price. Our advice to sellers would be – ‘be realistic’. There is little point in hanging out for top price – you won’t get get it – you will wait and wait – and wait.
If you are selling and buying, start looking the moment your property goes on the market. Proactively seek out what you want and, when you find it negotiate firmly (which may enable you to drop the price on the house you are selling).
On the assumption that most people have to buy AND sell a property, it’s a good time to be moving. And for investors, property presents some real opportunities now.
To hear more, contact us and our local offices.
James Greenwood
Journalists frequently ask us for our opinion on the national and local property markets.
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