These are the key points in the latest W A Ellis Prime London property market comment.
Simon Godson, partner in residential sales said:
“Statistically, we have seen an incredibly active June with the number of buyers registering on our website up 45% on last month (May) and interestingly, 68% of visitors to our website in the last month have been new. Demand is still very active, and with over £12 billion pounds worth of property in central London available to purchase (up 3.4% on last month), there should be enough to fuel this interest. The difficulty for buyers is sourcing quality stock, and securing a safe investment quickly and efficiently, as these sorts of good quality properties tend to end up in sealed bid scenarios.
“The market is still very much "in play" and attracting buyers from all corners of the world, indeed, in Cadogan Square, a renowned Knightsbridge garden square where we are known to have the expertise and knowledge to rival any of our competitors, we have in the last two/three months sold a figure approaching £25,000,000 worth of residential property, and we have taken instructions on a further two apartments in the square. We also commenced marketing three flats in Lennox Gardens, one of which is already under offer with strong interest on a second. We went to best and final offers on a house in Chelsea which has exchanged, and have agreed sales on a number of other properties in the surrounding areas.
“However, despite the demand and activity, it’s important to note that stock has to be placed on the market at proven levels; buyers are, to a degree, cautious and considering their options carefully before committing to a purchase. There are many aspects to consider at this time for the sales market, namely the ongoing problems in the Eurozone and the changes in the stamp duty threshold, especially in prime central London, both of which are playing a big part in buyer’s decision making.
“As the Olympics rapidly approach, we expect July and August to continue to generate enquiries and we are already inspecting and advising on stock that will be launched in September. Many in the industry are suggesting that growth in prime central London is slowing from the rapid increases we have seen over the last year – perhaps this is no bad thing as it will remain sustainable.”
Lucy Morton, senior partner and head of lettings comments:
“Both the sales and lettings markets have been buzzing with activity lately. Our predictions that the lettings market would be more buoyant and active towards the end of June/beginning of July have been proved by the marked increase in enquiries from tenants wanting to complete and settle prior to the Olympics. We completed on a substantial house at £20,000 per week and have agreed a record price for a seven bedroom house on the Peterborough Estate in Fulham at close to the asking price of £3,850 per week.
“Some of the excellent stock we have been marketing, which in some instances were experiencing longer voids, are now subject to bidding wars. All family houses presented in good condition and priced correctly are being snapped up.
“We are noticing more and more that we are being asked for our expertise and advice in all areas of central London, having let many properties in Holland Park, Marylebone, Belgravia, Kensington and Chelsea, Knightsbridge and Fulham, so we enter July with a buzz of excitement due to the increased activity on both the sales and lettings markets.”
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