Navigating these challenges isn’t easy. With that in mind, these are the four key trends I’m advising buyers to be aware of in the coming weeks and months.
Expect stiffer competition for the best homes
Genuine “best in class” properties are scarce at the best of times and, despite there being fewer active buyers, we are seeing competition when great properties come up for sale – as long as they are priced correctly.
We have faced competitive bids on all kinds of best in class properties, ranging from family houses in Putney to super-prime trophy homes in Notting Hill. Be prepared to be decisive and ensure you have everything in place in advance to be able to proceed quickly.
For less sought-after properties, or where they are overpriced, there will be less urgency and you can take your time to have a look around and let vendors reduce their expectations. Just make sure you keep the selling agents updated with your search and request they notify you if any offers are made on properties you might be circling.
In terms of timing your purchase, the big question for buyers requiring mortgages is whether to search now while there are fewer active buyers in the market or whether it’s worth postponing a move until interest rates are lower. Bear in mind this will go hand in hand with an influx of more buyers into the market and the increased competition that will bring across the board.
Significant opportunity for properties requiring refurbishment
For the first time I can remember, every single buyer we’ve worked with over the last 18 months has wanted a turnkey property they can move straight into.
In the wake of Brexit, construction costs rose by around 25pc to 30pc, and supply chain problems continue to be an issue.
This has caused buyers to be nervous and reluctant to commit to refurbishment projects when there’s such significant uncertainty over timescales and costs.
Many sellers – until now – have been refusing to acknowledge the costs and held firm on their price expectations. However, we’re now seeing a glut of properties on the market which require work, and significant negotiation opportunities as a result. In fact, I estimate approximately 90pc of the properties for sale on the open market require refurbishment to some extent.
Be mindful, though, that sellers of these properties are feeling sensitive, as they may well have been sitting on the market for some time.
If you’re considering taking on a project, you need to do your research and substantiate your offer. Ask a builder or architect to estimate the realistic costs of work – make sure they factor in professional fees (such as surveyors, planning specialists and anyone else you might need), VAT and a contingency budget.