Price of property nationwide has risen by 0.8% this month which is the largest rise in this particular period since 2015, plus across the board prices are at an all-time high.
The Central London market however can often seems like worlds apart from the rest of the country. Average flat prices are now 13.1% lower than they were 5 years ago with buyers paying £206 less per square foot. Along with the more worrying percentage that 66.0% of properties currently available have been on the market for more than six months.
Why are these properties not selling and is it purely down to price?
Focusing, as we always do on the Central London market, 34% of properties currently available in this area have had a price reduction. This is a huge number and it can’t be purely down to the market.
If we look at our own average price reductions at Greater London Properties which is on average 9% – the data suggests that estate agents are over valuing. This is creating a static market and creates more expense and time pressures for Vendors.
Here are some facts from our GLP Sales Team:
1. If you want to sell your property at its best possible value – you will receive the most traction in the first 2 – 3 weeks of marketing.
2. By creating competition, you then have the power of negotiation meaning the potential for final bids. This would generally lead to properties going over asking price.
3. If your property it still on the market after a month, we have an 8 Step Plan which we will put into action.
4. If the market has essentially shifted since the beginning of marketing your property, only at that stage do we recommend a price reduction.
What to expect from the Summer Central London Sales Market?
With the stamp duty incentive slowly diminishing naturally people may re consider their position, however with the price point of most Central London properties (30% of properties are priced at £1million and higher) this really shouldn’t affect our market.
Other external factors such as summer holidays may become less problematic as people choose an English staycation meaning they keep flicking through the properties planning their next move.
Our residential team are happily extremely busy both in rentals and sales as applicants seem to be flooding back into Central London. Rents are cheaper however this has only encouraged tenants to move to get more for their money. Plus with more Sales properties coming to market, Buyer enquiries have doubled in the last month.
If you would like any advice on your property or you are looking to move, please get in touch with us. There is also the option of following us on Instagram for regular updates from our own team on new properties, market insights and Central London events.
Thanks so much for reading and enjoy the weekend of sunshine.
Kate Hill, Director