London is undoubtedly a buyer’s market at present, with those looking to purchase prime property in the capital becoming more pragmatic.
Vendors therefore are being more realistic about property prices or being more prepared to negotiate, in order to achieve a sale.
Withdrawals
However, while some sellers now understand the need to factor in stamp duty and economic uncertainty into their expectations, this is not the case for all. Indeed, some vendors would rather withdraw their property from the market, if they feel they are unlikely to hit their bottom-line price.
Some 58% worth of properties withdrawn from the market in central London so far in 2017 were withdrawn as opposed to being sold, according to data from LonRes. This is not only restricting supply from prospective purchasers, but also much needed stock for estate agents.
Marcus Dixon, Head of Research at LonRes, observed: ‘This gives you an idea of just how sluggish the market is. There are large numbers of people in properties they would really rather sell.’[1]
London market is proving to be ‘strange’
The level of withdrawals is an, ‘important barometer of the market,’ Dixon want on to note. He also observed that a lack of forced sellers have not been coupled with a decline in the economy, unlike during the economic crash.
Concluding, Mr Dixon said: ‘The housing market has slowed considerably but not a huge amount of people are losing their jobs or finding themselves unable to pay their mortgages.’
‘It creates a strange market in which lots of people are staying in properties that aren’t very suitable for them anymore.’[1]
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/london-is-a-strange-market-filled-with-people-living-in-unsuitable-properties