One of the most respected buying agencies says it believes that with well under a year before the UK quits the EU, hitherto-reluctant investors are ready to re-enter the prime London property market.
Black Brick says it is undoubtedly the case that prime London is currently a buyer’s market; however, it says it may not stay that way for long.
It says investors who have been sitting on the sidelines as prices have ticked down, fuelled by the uncertainty around Brexit, are poised to resume activity.
“We are fielding incoming requests from investors who believe that, with the March 2019 date at which the UK is set to leave the EU fast approaching, now could be the time to re-engage with London property,” says Camilla Dell, Black Brick’s managing partner.
She says many vendors continue to see advantages in selling off-market, to avoid ‘tainting’ their property if it fails to sell quickly given the current conditions in London; so far this year, almost half of the properties the firm has sourced for buyers have been off-market.
For the moment, Dell says, there are substantial discounts to be had, saying that her firm averaged a nine per cent reduction on asking prices this year so far this year.
If Dell is right the market will be coming back from substantial low points.
According to figures published recently by the Coutts bank, some 53 per cent of prime property is being sold below asking price, compared to 42 per cent last year, with buyers securing an average of 12.1 per cent off the asking price.