West End estate agency, LDG, has seen a buoyant sales market in the second quarter of 2013 (April-June) with an increasing number of UK buyers compared to those from Europe, and a number of people choosing to cash in their pensions in order to invest in property.
Laurence Glynne, Partner at LDG, comments: “Approximately 75% of our buyers have been from the UK this quarter. “Previously, we would have seen a lot more buyers from countries such as Cyprus and Italy; however with the ongoing financial crisis in such countries, people are no longer in the position they once were to invest in property.
“Within the UK market, our quarterly statistics show a large year on year increase in cash buyers, with 75% this year compared to 20% over the same period last year – we’ve seen a number of buyers cashing in on their pensions in order to purchase property for their children and then keep the property as a long term investment, so this increase in cash buyers may well be a reflection on poor performing pensions in some instances. Interestingly, many of our vendors seem to prefer cash buyers, which might also explain these figures. The on-going low interest rates meaning savings aren’t accruing in the bank is also a factor.
“We are also witnessing a sudden surge in the completion of deals on properties that have been on the market since Spring. For example, two flats that we have had on the market for three months in Burton Street, Bloomsbury, with limited viewings, now have a combination of five offers. Our very drawn-out winter probably didn’t help matters, but more than ever before, buyers seem to have more stamina when it comes to a property search, and are prepared to look for longer periods of time to ensure they really are purchasing the right property for the right price.”
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