Death, Divorce, Downsizing & Now Debt
Thursday 3rd August 2023
The school holidays are upon us, and we are having the usual summer lull.
We have been surprisingly busy this year up to now, so I belatedly turn my thoughts to an end of Q2 mini review of activity at STANLEY PROPERTY LONDON.
On the rental side, most tenants are staying put and paying rent increases.
We have been letting those few properties that have come back onto the market at rent increases of between 10% and 25%.
It is the properties let during Corona Chaos where we now achieve the strongest increases. In that phase landlords were happy to let at discounts to 2019 rental figures, just to ensure steady income flow. So, part of the recent increases now simply compensate for those subdued Corona Chaos rents.
Most independent Central London agents are straight down the line, and if asked tell me openly they have been quiet, with sales transaction volumes right down.
Buyers and sellers are sitting on the fence waiting to see which way the market will go.
Times are not easy for anyone but the big boys with their PR teams still churn out the usual bullshit on a weekly basis. There always seems to be some nationality or other charging over the horizon like hordes of Visigoths to buy up London property. Hmm.
Slightly, contrary to the apparent norm though, we have actually been quite busy on the sales side - though let’s not get carried away.
Most of the sales we achieved in the first half of the year have been our landlords exiting the market, often to pay off their mortgages.
Provided a property is sensibly priced, there is normally a sensible buyer who is not put off by the over-hyped media doom-mongering.
We don’t expect a busy August, and September may take a little time to warm up but I suspect Autumn may see some more activity as people have to make decisions, one way or another.
The reality of an estate agent’s core business is usually down to the three D’s. Death, Divorce and Downsizing.
In this modern era, we can add a fourth - Debt.
Higher interest rates (and for landlords - the stupid Treasury taxes before interest payment) mean that some now need to get out of the market to pay off loans.
Ten years of subdued prices in Central London means that others see the chance to get into Central London property whilst it looks like ‘relatively’ good value.
These alternative views create a market. Just a rather thin one!
Do please let us help you with any of the four D’s - whichever side of the fence you sit.
Until next time…
PB
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