The London Barometer August 2010
Wednesday, September 01, 2010 by Douglas And Gordon
Sales: August 2010
"In August, which is traditionally the quietest time of the year, we achieved the same rate of offers agreed as in the bustling spring market earlier this year. But activity is tailing off as buyer confidence falls due to news of the supposed double dip. As a result, stock is sticking - what took one month to sell a few months ago is now taking twice as long."
"Despite the gradual increase in supply over the last eight months, if there was going to be an explosion this autumn we'd be valuing many properties now, but we're not. Our advice is, if buyers think there is going to be a dip, put in an offer to counter the fall in value; and sellers should equally be willing to negotiate down on price to get their property sold."
Lettings: August 2010
"August was the best month ever for new rental business in Douglas & Gordon's 52 year history. Continued economic uncertainty, restricted mortgage finance and less price growth stability has led to a stronger rental mentality in London. The days of everyone thinking it's sensible to get onto the property ladder are gone, and renting for a longer term and later in life has become the norm."
"As a result, rental stock continues to diminish - we are operating at almost 40% less stock than this time last year. With prices soaring, and rental yields set to increase, the market is looking very attractive to buy to let investors; but even they are finding it difficult to arrange finance from lenders who appear to be offering favourable rates, but in reality aren't."
"Such is the demand for rental accommodation in most areas of London, tenants are offering terms landlords simply cannot refuse. Recently three friends looking for a three bedroom property to share in Clapham offered 10% over the asking price plus three months upfront in a desperate attempt to secure the property before it being marketed more generally."