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Junaid Iqbal Memon Discusses Homebuyer Return to London Property Market
13:24Falling Property Prices Tempting Despite Brexit Uncertainty
Read the latest Junaid Iqbal Memon blog. Junaid is an experienced businessman and property developer. Raised in Dubai, he has learned the ins and outs of a successful business at an early age having been raised in a business-minded household. Later on, he made the decision to explore the possibilities of real estate and property development. To date, he owns several properties and businesses ventures in London and Dubai. Below he discusses the increasing number of homebuyers that are going returning to the London property market.
Falling house prices are tempting homebuyers to gradually return to the property scene in London, despite the increasingly uncertain departure of the country from the EU.
While the average asking prices for properties in the capital were about half a percent lower compared to the figure a year ago at £616,500, recent reports show that there has been a recent increase in buyer activity. Property experts are saying that this could be an indication of the start of the property market’s recovery. The national index shows that prices across the country are higher by 1.2% compared to last year at £304,000.
Jitters concerning Brexit have been recently fuelled due to dire warnings about a 35% drop in the property prices in just a span of three years if a no-deal Brexit is going to emerge. However, estate agents have contended that regardless of the economic state then people are still going to make a move where property is concerned.
The market for first and second-time buyers are certainly those people that are quite conscious about Brexit. This is expected to affect the rate at which they will make their decision. However, it is also a fact that they are moving forward. Of course, it cannot be avoided to see buyers who are using the uncertainty brought about by Brexit as a tool in order to get a better-negotiated deal as far as agreed price goes.
Meanwhile, agents across the capital are seeing an uplift in terms of buyer enquiries as well as agreed sales in both July and August. There has been an 18% increase in buyer enquiries compared to the figures recorded for the same period last year. This is a good sign that there is indeed motivation among buyers to check out what the market has to offer and come back.
Conversion rate has also improved. The number of viewings that buyers require before making an offer has significantly gone down as well. This means that the conversion rate has definitely improved. Renewed buyer appetite follow rice falls that went on for two years due to a rapid increase of more than 50% from 2011 to 2016. Asking prices have been down in 24 of the boroughs in the British capital from the start of the year until September.
Some people are trying to temper down expectations though stating that while the recovery is encouraging, it is also important to remember that the process concerning price reductions, which can be such a drawn-out and lengthy process, will likely run its course in various outer parts of London. Sellers and agents will likely need to get their expectations readjusted especially with buyers being out there making sure that the price they are getting is right.
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