The London Barometer August 2014
Friday, August 08, 2014 by Douglas And Gordon
August 2014 / Sales
"July saw a highly motivated market in which almost 50% of newly registered applicants made an offer on a property. These savvy buyers, looking to take advantage of a subtle market change, have created a standoff with vendors who maintain high expectations of the value of their property. Offers agreed were 25% lower compared to last year while stock levels appear higher by virtue of the fact that properties took twice as long to sell. The actual number of new properties coming to the market is flat.
“Unmotivated sellers are in no rush to drop their prices but with 62% of July deals done where a price had been reduced, the evidence is telling. We expect to see more ‘foothold landlords’ – those landlords lucky enough to keep their London property rented out until such time as they feel the market suits them to sell into.”
George Franks, Sales Director
August 2014 / Lettings
“The rental market flourished in July with applications for rental properties rising substantially from 840 in July 2013 to 1,597 in July 2014. We also dealt with record numbers of searches from relocation agents working on behalf of corporate clients which resulted in a high number of lettings. This usually indicates a strengthening economy and a healthier employment outlook.
“ The fast paced turnover of stock has resulted in lower supply levels compared to a year ago although, on closer inspection, the number of new instructions is similar to those recorded in July 2013. Landlords are predominantly re-letting their properties when a tenancy comes to an end again feeding our forecasts that August will be a peak period for the rental market. The number of landlords exiting the rental market and putting their property on the market in Q2 is half what it was in Q1.”
Virginia Skilbeck, Lettings Director