London Property Match Spring Update

We have been searching in zone two this quarter and in terms of property pricing here, we are seeing 10% off the top of the recent market high.

This is being driven by the uncertainty that still remains around Brexit; sellers have now realised in order to sell they need to be more realistic with their pricing.

Properties – both houses and flats – have to be priced at exactly the right level in order to maximise viewings. Any overage on the price and buyers will often disregard it without even viewing the property. In fact, we have noticed a marked uptick in calls from agents this year who are working hard to generate viewings and encourage offers.

When properties are priced “right” we have noticed that there can then be enough interest amongst buyers for a sealed bid situation to arise – where two or more buyers come up to the asking price and are then asked for their “best bid”. Some properties then achieve above asking price sales. However this certainly is not a return to the behaviour of the peak of the market-it continues to be a buyers’ market, with strong opportunity to negotiate, but it shows you what realistic pricing can achieve for sellers.

In terms of who is moving in this market, it does tend to be those that ‘need’ to move being due to a new job, downsizing or families looking for more space and homes near good schools. Despite all the reasons to stay put, for growing families, life goes on and there is an openness to looking at locations further out to satisfy their need. Outer Prime areas of London, with an extending boundary is increasingly popular with the Central London family and worker. We have observed it is those buying houses, rather than flats for investment, that are most active in the market in areas we cover currently. Those buyers who are more speculative are biding their time, perhaps until after the Brexit deal is complete, before investing. However, we are confident it is a good time to buy as there is less competition and more opportunity to negotiate on price. Those taking the plunge are doing well and securing good value, long term investments.

Looking forward, we can see much less volatility in the market this spring than last. There are no elections or referendums to disrupt the market and so we are anticipating more activity over the coming months albeit still much lower than at peak.

Pros

• Energy efficient – radiators must heat up to at least 65℃ to heat up a room, underfloor heating only 29℃ or less. Radiant heating saves an average of 15% on heating bills.
• Effortless to run – once installed radiant heating requires no maintenance and usually comes with a lifetime guarantee.
• More space and design freedom – with underfloor heating you can enjoy your whole room without radiators taking up wall space. Underfloor heating works with all floor coverings.
• Safety – with radiators out of the way you need not worry about sharp or hot edges.
• The air quality is also better-underfloor heating keeps the air fresh and oxygen rich and means you won’t have dust circulating.

Cons

• Installation cost – there are two types of underfloor heating systems: water and electric. Underfloor heating can cost between £75-£100 a sq. m with water-based systems costing 2-3 times that of an electric based system. A water-based system is however cheaper to run.
• Radiators are cheaper to install.
• Floor height – floors with underfloor heating will be about 2-3 cm higher than those without.
• If something goes wrong there could be more disruption if repairs require digging up the floor

Conclusion: Underfloor heating may cost more to install, but in the long run it will save you money on your heating bills as it is a more energy efficient and effective way to heat your home.