30
Aug
SCRAMBLE
There is a lot of scrambling going on at the moment. Scrambling
for university places, scrambling to recover from riots, and
scrambling to handle trading, employment, banking and international
currency difficulties.
On the surface there is no such scramble in the property market.
But don’t be deceived. Under the surface there is a great
deal going on. Sellers are scrambling to sell and buyers are
scrambling to buy. For buyers the pendulum seems, once again, to
have swung in their favour. It is another good time to buy. This is
particularly so in the middle market sector. Not perhaps so much
for first time buyers beset with mortgage deposit challenges but,
even in this sector, buy-to-let investors are benefiting from a
very active lettings market with rentals on the rise. In some
circumstances, it is now cheaper to buy than rent.
Yet some sellers are just not scrambling enough for their own
good. They still believe that market conditions are a lot better
than they are - this illusion is fuelled by press reports that the
central London market is thriving. But this has a great deal to do
with foreign buyers moving international currency. In fact, of the
twenty most expensive houses sold in the UK recently, only two
weren’t sold to foreign buyers – and Bernie Ecclestone
bought them both! The result is a super micro-market in London that
is out of step with the rest of the country.
For sellers outside London there are some warm property spots.
But, in the main, those anxious to sell, for whatever reason,
should accept that they will only find a buyer quickly through
competitive pricing. Location, location, location is no longer
enough. Today, it is location, location, location, price and
presentation that separate the movers from the stayers.
Perhaps sellers should learn from school-leavers who have
cancelled their longed-for gap year to avoid higher university
costs. Needs must as the devil drives.
So sellers should scramble to get their houses in order and
buyers should scramble for a great opportunity. We are all entering
a new age with a shifting economic axis and an uncertain future.
But what is very certain, despite these difficult times, is that we
all need somewhere to live and we always will.