London’s property market bounce to be short lived
London estate agent, Cluttons, has reported a sharp reduction in selling times, with homes in the capital changing hands an average 4.7 months after the erection of the “For Sale” board, compared with 8.6 months a year ago.
The firm attributes the change to a chronic shortage of stock, which is also allowing vendors to achieve a sale price within 2% of asking price, compared to 30% this time last year.
In terms of viewings, Cluttons has revealed that one in four result in an offer being made.
However, looking forward, residential sales partner, James Hyman, is cautious because large numbers of Londoners who bought at the peak of the market are coming to the end of two-year fixed and tracker-rate mortgage deals.
He explains: “Many will struggle to refinance at a rate they can afford, due to the loss of equity in their homes and the stricter LTV criteria of lenders, which will force them to sell and bring a surge of new property to the market.”
Mr Hyman therefore warns that London prices could dip by 5% in the autumn.