Despite recent reports that accidental landlords are once again flooding the sales market, Cluttons has not experienced any increase in sales stock. Many of these landlords are in fact tied into two and three-year fixed buy to let mortgages, leaving them no option but to continue renting for the time being. Meanwhile, lots of potential sellers who would be in a position to move are worried about securing a mortgage on their new property at a favourable rate, as a result of reduced income multiples and stricter lending criteria. They are also tempted to hold out while prices are rising, in an attempt to achieve a higher sale price next year, when in fact they are facing the ideal selling opportunity.
James Hyman, Partner for Residential Sales, says:
"Those sellers who have bitten the bullet and put their homes on the market in Central London in the last few weeks have been well rewarded, but this price bubble, caused only by the temporary acute shortage of homes for sale, will not last forever. I expect to see an increase in supply over the coming months and particularly in the New Year, and it won’t take much for the market to swing in the favour of buyers."
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