X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-There are clear signs that the London residential market is slowing down,according to a report released today by agency Knight Frank. The companysuggests that, while higher Stamp Duty and concerns over mortgageinterest rates are playing their part, unrealistic expectations ofprices amongst home owners are also playing a key role.

‘The continuous nature of rises in property values over the past fewyears has apparently led some vendors to assume that every sale willbreak new records,’ says Chris Hart, partner at Knight Frank’s office inWimbledon, southwest London. ‘Clearly this is unrealistic and in thisarea the pace of the market has slowed.’

Knight Frank has advised clients to price their properties sensibly inorder to attract a number of prospective buyers, which may result in asale being agreed at above asking terms because of the competition. ‘Anover-priced property on the other hand will not sell, will go stale onthe market and will eventually need a price reduction,’ says Hart.

Grant Alexson at Knight Frank in Hampstead, NW3, says, ‘London buyersare very discerning and look at a number of properties; they soon learnwhat is good value in their particular price range. If a property is onthe market at too high a price it simply will not sell.’Alexson adds that the huge surge in Hampstead house prices is no longertaking place but notes, ‘They have consolidated at record levels anyway,but demand is still very high.’

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.