It has been suggested by some agents that the prime central London market is slothful in the extreme, Patterson Bowe agency claims there are 30 potential buyers for every property for sale at £2m and above in one part of the capital.
They indicate that since the election there has been a 30-buyers-to-one-property ratio for every £2m-plus home in the borough of Kensington and Chelsea. Therefore, vendors at the top end of the market have recently managed to command above local average asking prices for their properties which are currently valued at more than £2,000 per square foot in the most primary locations.
This is in comparison to the market climate prior to the Election where properties at £2m and above were not going under offer for several weeks and not always achieving their true market value.
Stamp duty is still a concern.
Stuart Patterson, managing director a Patterson Bowe highlights sellers’ fears about the stamp duty they will have to pay on their next purchase has discouraged those bringing homes to the market.
He says “The recent hike in Stamp Duty is taking time to be absorbed into the market. It remains a significant factor both to a purchaser and conversely to vendors considering moving or trading up”.
Some agents believe that this will create a larger bid offer spread, but will inhibit buyers from moving across town.