“The Christmas lull has come early for the London sales market with October seeing the lowest number of new valuations this year. Vendors have been encouraged by reports that prices in London will increase over the next couple of years, so are waiting for the market to pick up.”
“For those properties already on the market, buyers have been bidding at asking prices, but again, vendors are pulling out of the sale at the last minute thinking they’ll get a better price next year. Less than 40% of the offers received in October were actually agreed.”
“We’re advising vendors to market their property now to get two bites at the market, one now when there is little competition from other properties and if necessary, again in the New Year when there will be more buyers but also more competition..”
Meanwhile the firms Average London Rent Index for Q2 2010 shows an average annual rent increase of 24%, with the biggest increase of 38% for four bedroom houses.
“Those who can’t afford to buy a property in London continue to be forced into rented accommodation; but supply is still at worryingly low levels with four people fighting for every one property available. Tenants have to be the first through the door and willing to pay the price for it if they don’t want to lose out.”
“Disheartened vendors who’ve failed to sell at the right price continue to be one of the biggest sources of rental stock in London. And we are seeing more buy to let investors entering the market who are encouraged by increasing rents. A significant majority of existing tenancies renewed at an average increase in rent of 6.4% in October, compared to 5% last month.”
Have your say on this story using the comment section below