31
Aug
Scramble
There is a lot of scrambling going on at the moment. Scrambling for
university places, scrambling to recover from riots, and scrambling
to handle trading, employment, banking and international currency
difficulties.
On the surface there is no such scramble in the property market.
But don’t be deceived. Under the surface there is a great
deal going on. Sellers are scrambling to sell and buyers are
scrambling to buy. For buyers the pendulum seems once again to have
swung in their favour. It is another good time to buy. This is
particularly so in the middle market sector. Not perhaps so much
for first time buyers beset with mortgage deposit challenges, but
even in this sector buy-to-let investors are benefiting from a very
active lettings market with rentals on the rise. In some
circumstances it is now cheaper to buy than rent.
Yet some sellers are just not scrambling enough for their own good.
They still believe that market conditions are a lot better than
they are - this illusion is fuelled by press reports that the
central London market is thriving. But this has a great deal to do
with foreign buyers moving international currency. In fact, of the
twenty most expensive houses sold in the UK recently, only two
weren’t sold to foreign buyers – and Bernie Ecclestone
bought them both! The result is a super micro-market in London that
is out of step with the rest of the country.
For sellers outside London there are some warm property spots. But
in the main those anxious to sell for whatever reason should accept
that they will only find a buyer quickly through competitive
pricing. Location, location, location is no longer enough. Today it
is location, location, location, price and presentation that
separate the movers from the stayers.
Perhaps sellers should learn from school-leavers who have cancelled
their longed-for gap year to avoid higher university costs. Needs
must as the devil drives.
So sellers should scramble to get their houses in order and buyers
should scramble for a great opportunity. We are all entering a new
age with a shifting economic axis and an uncertain future. But what
is very certain, despite these difficult times, is that we all need
somewhere to live and we always will.