Some of London’s largest estate agents have recorded a notable rise in demand for property in the capital, as price-sensitive purchases look to take advantage of favourable home buying conditions.
Chestertons says it sold 5% more properties in August compared to July and registered more new buyers, suggesting that house hunters have digested the higher mortgage rates and are taking advantage of the slower sales market.
Buyers also appear to be encouraged by the fact that there are currently more mortgage products available than any time since February 2022, which is increasing competition amongst lenders and driving down rates.
Meanwhile, some homeowners appear to be delaying putting their property on the market and are instead choosing to let them on a long- or short-term basis. This has caused a 10% fall in the number of new properties being put up for sale in August vs July.
Matt Thompson, head of sales at Chestertons, said: “Some sellers may be hesitant to put their property on the market at the moment, but there are still plenty of buyers out there waiting for the right property at the right price and demand continues to outstrip supply in the capital. As a result, sellers have been less willing to accept any further price reductions last month; particularly as many had already adjusted their initial asking price to reflect the less active sales market.”
Chestertons’ data found that there was a 24% decrease in the number of sellers willing to reduce their asking price in August.
“In order to still find a suitable home within their budget, house hunters are adopting an even more flexible approach to their property search and are increasingly open to compromise on location and size of the property,” Thompson added.
Foxtons has also seen an uptick in buyer demand, according to the firm’s chief of sales, Jean Jameson.
Following the release of the ONS house price index yesterday, Jameson said: “Properties with more competitive pricing are still stimulating buyer demand and, for Foxtons, deals agreed in July were the highest they have been over the past five years. This indicates that London property remains an attractive option for many and that buyers and sellers are opting for established real estate agencies to support with transactions in this market.”
