Summer Market comment 2023

Sara Ransom of Stacks Property Search says:

Prime Central London down 10%

“Property in prime central London is still around 10% cheaper than it was three years ago, but as much as that might once have made it look good value, in a post-Brexit, post-Covid world, there are many less buyers for this rarified sector of the market.

No outside space, no buyers:

“Flats without outside space are hard to shift and, if anything, are falling in value at a time of high inflation. There’s a huge demand for lateral space and large gardens, tall narrow terraced houses with tiny patches of gardens are less popular.

Hot suburbs

The big move is out to the suburbs to Richmond, Wimbledon, Greenwich, Dulwich and Wimbledon where the gardens are big, the parks are huge, but it’s still easy to get into Central London.

“This is the market where the most competitive bidding is currently residing as prices are driven up by those moving out from central London and areas such as Fulham and Islington. Family houses in the suburbs are consistently going to best and final offers and achieving well over the asking price.

Nobody cares how close the tube is

“Times change, working hours are more flexible, more people get around by bike, most people like a walk, so there’s no longer a premium to be paid on properties close to the tube.

Not even the developers want a project:

“London property that needs modernising needs to be very attractively priced to get any interest at all. It’s so easy to compare a ‘done’ with a ‘needs work’ example, and there’s no secret that building costs have sky-rocketed, up by as much as 50% and still climbing and builders coming in with a price that’s guaranteed for only 14 days.

“Comparisons are easy and it’s not difficult to see whether a ‘project’ represents good value for money – mostly they don’t. The consequence is a glut of overpriced houses that need work – don’t get tempted unless you can broker a seriously good deal.”