Homeowners in up-and-coming Tooting – so-called London’s coolest district – are the capital’s greediest, according to independent estate agent James Pendleton.
This rapidly gentrifying hotspot recently made it onto Lonely Planet’s top ten coolest neighbourhoods in the world, but new research shows that it is also where homeowners’ properties languish longest, as they hang on hoping for a higher price.
Homeowners in “London’s Coolest District” Named the Greediest
Unsold properties in the Wandsworth district, which is home to its famous Bec, Broadway and market, have sat around for an average of 313 days (45 weeks), compared to a London average of 163 days.
Peckham, where unsold homes have sat around for 286 days, closely follows Tooting.
This phenomenon is even present in upmarket Knightsbridge, which claimed third place, with 253 days, mirroring a slowdown in the prime London property market.
James Pendleton’s experts said that it was telling that every location in the top ten, besides Tooting, were prime inner London areas, where vendors typically feel that they can rely on extremely high demand to inflate prices. This is despite the annual rate of growth for the UK property market more than halving in the year to August.
Almost all sellers price in an optimistic premium when they sell their homes. However, in times of a slowdown, it is the most nimble vendors – those that are willing to move with the market and act decisively – who benefit.
An army of such sellers are likely to be in Tolworth, Kingston-upon-Thames, where the average unsold property has been marketed for just 30 days, followed by Charlton, Greenwich at 33 days, and Wallington, Surrey on 50 days.
The Founder Director of James Pendleton, Lucy Pendleton, says: “In the world of financial markets, it is often said that hope is not a strategy. Well the same is true of property.
“Some will call it optimism, some will call it greed, but that’s what it means to hang on for a better price in a market that’s not willing to meet your highest expectations.”
She continues: “These statistics reveal the huge numbers of homes that aren’t selling. They’re just sitting there growing stale while their owners resist marketing them at a more realistic price.
“It is remarkable that the distinction is so clear between high-end areas like Knightsbridge, where vendors might not feel the pressure to sell so quickly, and areas in outer London, where property clearly doesn’t hang about.”
She explains: “The market is moving faster in these areas because sellers are keener to sell and willing to do battle on price, shifting their expectations in line with the market as they compete fiercely for buyers.
“That is the approach to take at a time when growth has slowed. The alternative is holding on for that price you dreamt off when you first put your home on the market, but are you then at risk of staring at the same four walls far longer than you expected?”
If you’re looking to sell a property, it may be wise not to take advice from homeowners in London’s coolest district and price your property accordingly!