Competitive bids are back for best in class properties, according to Jo Eccles, founder and MD of prime London buying agent Eccord.
Reflecting on current trends in the prime central London property market, Eccles says that it remains “incredibly sensitive” as far as buyers and sellers are concerned, with plenty of “diplomacy and persuasion” needed to find common ground on pricing.
Eccles commented: One American family office client recently said that they were looking to buy in London because they were expecting to find ‘blood on the streets’ but in fact we’re barely seeing any forced sellers, or even sellers who need to sell, so it’s just not the case.
“The seasonal flurry of new sales listings that normally kicks off the spring selling season has not yet materialised and buyers are becoming frustrated at the lack of choice at sensible prices. We’ve seen several competitive bidding situations for best in class properties over recent weeks, particularly family houses up to £10 million. A house in Holland Park newly listed last week, inviting bids in excess of £20 million, saw 24 people through the doors in a single two-hour window.
“My advice to any hesitant house seller is to take advantage of the current restricted supply and launch to the market – but be sensible. The best traction is achieved when prices are realistic.”
Buyers who cast doubt on their integrity by putting in unrealistic offers are losing out, in Eccles’ opinion.
She continued: Credibility is king, and while there’s room for sensible negotiation, some buyers are coming into the market having read the headlines, expecting to knock 15% off before the negotiations really begin. Quality buyers, who are respectful and well regarded, are trumping higher offers across the board.”
With regards to the rental market in price central London, Eccles reports that around 90% of tenants renewing rental contracts.
She added: “The heat has come out of the rental market in the last few weeks. We’re seeing 90% of tenants renewing their contracts with an average 7% uplift on rents – so less than the current rate of inflation. They’re reluctant to take their chances trying to find something new when there’s so little stock available, high prices across the board and uncertainty around running costs in a new property. This high renewal rate is contributing to a lack of fluidity in the market, with a very small pool of properties changing hands.”
