Welcome to Matt Smith and Kris Ericsson!
2020 began with such promise. Property prices were beginning to move in a positive direction and we saw an influx of new enquires. This resurgence in activity following the ‘Brexit’ uncertainty provided us with great expectations for the year ahead.
Given the obvious change to our society in recent weeks, everyone is asking is “what next for the London property market?”. Commentators in the industry are adjusting their forecasts almost daily and headlines are changing like the weather, so it would be a brave person to suggest what will happen next.
Our experienced team are well versed in dealing with all cycles in the property market so as we start to resume viewings in the coming weeks and months (whilst adhering to the government guidelines on health and safety) we are confident the London market will weather the storm.
Below, we set out why we believe this will be the case:
Firstly, we don’t envisage numerous distressed sales emerging in the coming months. Simply put, a large majority of homeowners in Prime Central London are discretionary sellers which when coupled with the fact that interest rates are currently so low, suggests that desperate sellers will be few and far between.
Secondly, in contrast to the recession in 2008/2009, there remains significant liquidity in the market and we have continued to receive a large number of new enquiries from purchasers throughout the lockdown period. This liquidity will serve the market well and help to retain value. Clearly there will be price adjustment in some areas in the market but it is also worth noting that due to the reduction in house prices witnessed in the past 3 years, our view is that there won’t be further significant prices falls.
Finally, following Brexit and the General Election, the overall sentiment was one of ‘pent-up demand’. Indeed, the Prime Central London market is a rarefied market and one should never underestimate the lure of owning a London property for the global elite. There will of course be some people for whom purchasing is no longer a consideration and the volume of property transactions will be reduced in the short/medium term.
With that in mind, we are seeing that those enquiries and buyers who remain in the market are, for the most part, extremely serious and of course this is where dealing with a firm such as Tedworth (with our experience and knowledge) will pay dividends.