Well traditionally in spring we as agents tend to use this period as a yard stick to see what the market is up to. So far, since the very end of February we have seen a large increase in activity with both potential purchasers enquiring and potential vendors seeking a valuation. This is good news for all. With overseas buyers taking advantage of the recent drop in the pound, the rumour mill going into overtime about the possibility of The Bank of England reducing the base rate even lower and the stock market going great guns have obviously helped.
We have seen sales values increase significantly over the last six months, but rental values stagnating especially at the high end of the market.
There is not a day goes by when someone asks me what I think the market will do in the future, so without pulling any punches, I honestly don’t know. But property in prime locations such as the Royal Borough have tended to be immune from the current economic climate and is a very different picture from the rest of the country. However, as one who has seen two recessions in their time!! I firmly believe that London represents an economic ‘ripple’ effect for the whole of the U.K. and this is slowly but surely taking effect at present, so let’s hope it continues.
What is slightly worrying is that we are increasingly seeing estate agents completely over valuing to gain the instruction from their competitors, which eventually gets the vendor agitated in the time it takes to sell ( at a much lower price!) and even if you receive a ‘wild’ high offer, remember this has to be substantiated by the mortgage valuer, who in turn may not agree? Of course as agents we are bound to achieve the highest possible price for our client, but there is a limit.
Here at Rickman, we pride ourselves of being professional in all our transactions and ensuring that once an offer has been received, we substantiate the terms between both vendor, landlord, Purchaser & Tenant are viable.
Let’s all hope it proves to be a ‘Good’ spring.Kieran Ryan MNAEA MARLA