Metro - 11 October 2013
Competition in the market
By Jo Eccles
If any readers are searching for a property right now in central London, no doubt they are feeling the heat and frustration of the competitive market. The competition is largely due to a lack of supply of good properties, and there are a number of reasons for this.
Firstly, a lot of existing home owners can’t afford to move up to the next rung of the ladder, or they simply can’t find their next purchase. I’ve seen countless purchases fall through because the seller has withdrawn as they’re unable to find anywhere to move to. Another reason is that there are lots of investor buyers in the market right now. Low interest rates are attracting them to borrow and buy property; and despite the low gross rental yields in London, they’re all confident about capital growth over the next 5 to 10 years.
The perceived stability of the London market, plus the weak pound, means that overseas buyers are playing a prominent part in the mix, too. Our own client base is probably the most diverse it’s ever been, with us acting for a huge range of buyers looking across many areas of central London.
So, if you’re looking to buy right now, you have your work cut out for you. If you are searching without representation, the key is to build relationships with the main estate agents in the areas you’re searching in. Even if you’re signed up to property alerts, you’re probably realising that the best properties are under offer before they’ve even gone online. So if you’re going to do anything to help your search, start charming the estate agents. It will do wonders.