More activity in the market, especially in the £5m – £10m price range
Despite the new political uncertainty brought by Theresa May’s announcement that she will be resigning in June, the increased market activity we noted last month remains.
For example, we are involved in the managed sale of a client’s property in Chelsea. Having been on the market for nearly 9 months at £7.95m, we have now received an offer from a domestic buyer who already lives locally and is looking to downsize. It is yet to be agreed but it is certainly a significant step in the right direction.
Equally, another British client of ours is looking to sell their home for £9m as they are spending more time in the USA and they have found a property out there which they would like to buy.
We are seeing sellers remain pragmatic about the price levels they will accept and are very much adopting a ‘life goes on’ attitude.
The sentiment with our buying clients is equally pragmatic. We have seen a number of clients engage our services, having had initial conversations with us several months ago, and they are now ready to proceed. Their motivation is also largely down to ‘life goes on’.
The two main categories of domestic clients we are currently representing are those who are in rented accommodation and looking to purchase before the end of their lease, and those upsizing and looking to take advantage of doing so in a softer market.
Of our international clients, most are concluding that they cannot time the market perfectly and they remain positive about the long-term fundamentals of London including its culture, nightlife, school system, strength of property law and so on. Each client has the intention of using their London property themselves or for their children in the long-term and our buying team has a busy summer ahead with a number of overseas clients already scheduled to be in London with the intention of acquiring property during their stay.
There is still a significant proportion of would-be-buyers remaining on the side lines but it is interesting to note that more are deciding not to wait any longer. It is certainly quite a civilised market to be dealing in right now with less competition from buyers, but having access to off-market properties and meaningful pricing data remains key to buying well.