Shocking Drop of South London Landlords!

The Royal Institution of Chartered Surveyors (RICS) has released its latest UK Residential Market Survey, which shows a sharp decline in landlord instructions. The net balance for landlord instructions dropped 36% in June 2023, down from 5% in May. This is the largest monthly decline since the survey began in 2008.

The decline in landlord instructions is being attributed to a number of factors, including the rising cost of living, the Bank of England's decision to raise interest rates, and the uncertainty caused by the war in Ukraine. These factors are making it more difficult for landlords to cover their costs, and are leading some landlords to sell their properties or take them off the market.

The decline in landlord instructions is having a knock-on effect on the rental market. The net balance for rental demand increased to 40% in June, up from 35% in May. This suggests that there is still strong demand for rental properties, but that there is a shortage of available properties. This is likely to lead to an increase in rental prices in the coming months.

The RICS survey also found that the sales market is continuing to slow down. The net balance for new buyer enquiries slipped to -45% in June, down from -20% in May. This is the lowest reading recorded since October 2022. The decline in buyer enquiries is being attributed to the same factors that are driving down landlord instructions.

Overall, the RICS survey suggests that the South London housing market is starting to cool. This is likely to be a gradual process, but it is something that buyers and sellers should be aware of.

Here are some additional thoughts on how the RICS survey relates to the South London market:

• The South London market is particularly sensitive to changes in the wider economy. This is because South London is a popular area for investors, and any changes in the investment climate can have a knock-on effect on the housing market.
• The South London market is also a relatively expensive market. This means that any changes in the cost of living or interest rates can have a more significant impact on the market than in other areas.
• Overall, the RICS survey suggests that the South London housing market is starting to cool. This is likely to be a gradual process, but it is something that buyers and sellers should be aware of.

We've seen evidence of this, as you will know from other articles I've posted. So what to do?

Just remember that if you are a homeowner then upsizing means that NOW is a good to sell - homes larger than yours will command a bigger discount if you have a motivated seller because they will struggle to sell (their pool of buyers is smaller still). You can therefore negotiate a better price. Price in a bit of a drop. If you are moving out of London the same may apply. What happens in zone 1 happens later in zone 2 and so on - the ripple effect. Nonetheless remember that you are looking to move for reasons other than to secure the best price possible, you need to weigh up hassle factor, job location, schools and a host of other things of course. It is impossible to time the market to sell yours at the very peak of its price and buy at the very trough of another property's value at the same time!

If you are curious as to what yours is worth pop your details in my online valuation tool or invite me around for a visit and let's get you moving!

Property Sales in South London Are Struggling - Here's Why!

Freefall

Property sales have continued to fall since the Bank of England began raising the base rate, declining at an average rate of -3.4% per month across Britain since December 2021, according to analysis. The South London property market is following the national trend, with sales falling and prices starting to level off. According to Rightmove, the average house price in South London is £752,624, which is up 2% on the previous year but down 0.3% on the month. The number of properties sold in South London fell by 11% in May 2023 compared to May 2022.

South London Slowing Down?

There are a number of factors that are contributing to the slowdown in the South London property market. These include: 

• The rising cost of living, which is making it more difficult for people to afford a mortgage.
• The Bank of England's decision to raise interest rates, which is making it more expensive to borrow money.
• The uncertainty caused by the war in Ukraine, which is making some people hesitant to buy a property.
• Despite the slowdown, the South London property market remains relatively strong. There is still a shortage of properties on the market, and demand is still outstripping supply. This means that prices are likely to remain relatively stable in the coming months.

I did some digging and here are the trends month-on-month for properties in South London in terms of time on market:

April 2023: 13 weeks

May 2023: 14 weeks

June 2023: 15 weeks

July 2023: 16 weeks

So what can you do to beat the competition and get your home sold QUICKER!

• Use an agent employing the latest trends in terms of presentation to get the most eyeballs on your property. Video, floor plans, music, long and short form content
• Stage it well - declutter and take your agent's advice on what to put in storage and how to present your home for maximum impact.
• Launch - all the marketing hoo-ha should be done IMMEDIATELY to create the buzz and get as many buyers through the door in the first 48hrs as possible. This is when you can create a bidding frenzy as buyer FOMO can set in!
• By all means Price it correctly. Don't price too high thinking you can take an offer, you want to price LOW to get the people in through the door. People like a bargain, when they see value and they fear missing out they'll offer what they think it's worth. And remember, your property is determined by what a ready, willing and able buyer is ready to pay, not what you think it's worth!

So if you are in the market... drop me a line and let's talk!

Is Your Front Door Colour Putting Off South London Property Buyers?

Price/colour?

You'd think it's an odd thing, that the colour of your front door will impact the overall price of your home, but... Property firm Nested commissioned a survey of 1,000 UK homebuyers and found that 94% admit that the colour of a front door has an impact on the overall appeal of a home’s external aesthetic.

What’s more, half of buyers said that door colour has some influence in their decision to either buy a home or look elsewhere.The plot thickens!

Boring?

No surprise but grey is boring, and safe! 18% argued that it was their colour of choice. Other popular choices were black (18%), blue (16%), green (16%), and white (11%). The least popular door colour is brown (3%). Apparently an aesthetically appealing home commands a premium, with 41% of buyers admitting to paying more for a property that looked good. Alice Bullard, Managing Director at Nested, commented: “It’s strange to think that something so simple as the colour of a front door could sway someone’s decision to buy a home and the reality is that the door itself can be easily changed, but it’s the overall first impression it adds to that is of the utmost importance when looking to attract a buyer."

Buyers are in control

Especially in a market such as today's where buyers are stretched for affordability and they want "ready to move in to" properties having all the boxes ticked is a definite yes-yes as opposed to no-no, so if you're looking to sell then painting the front door is the least you should be prepared to do!

If you are looking to maximise the value of your home in today's market then stay tuned for more advice coming your way, from decluttering to staging the property for maximum results, I'll cover all these topics in the coming few weeks.

Personally I'm not sure that colour itself is off-putting, it can certainly be a statement and if done correctly with complimenting colours any colour could work, as long as it's fresh! In summary I do think correlation, not causation! If you're looking for a quick online valuation then check out my online valuation tool or drop me a line and have me over for an in-person valuation if you're looking to sell or let.

Worried about First Time Buyers in South London

 In a shocking news: a survey from The Mortgage Lender has revealed that nearly a quarter (24%!!!) of First Time Buyers did not know that they would have to pay stamp duty when buying a home!

I mean can you Adam and Eve it? You are about to undergo arguably the biggest, most important purchase of your life and you haven't researched it to the nines? Other things that buyers revealed they didn’t factor into their budget when buying their first home include solicitor’s fees, valuation fees, surveyor’s fees, and the cost of a homebuyer survey.

Have a look at the table below and see how uneducated the average first time buyer is today...

You would think in this day and age of technology and information these sorts of things could be practically absorbed via osmosis, but sadly it's clearly too much information for the average first time buyer to handle. Thankfully I have not had to speak to any first time buyers in the last years who were unaware of these. Service charges are at the top of buyers' agendas these days, with leasehold charges spiralling onwards and upwards having a reasonable service charge for a reasonable level of service is of key concern to many buyers as affordability levels are currently stretched.

So what are the agents doing to educate? Thankfully there are good agents out there that insist that buyers look at mortgages and assess affordability before viewing in order to prevent wasted efforts, time and above all heartbreak when they find their dream property is out of reach. In my experience this journey (the affordability journey) ensures there's enough money to pay for the one-off fees as well as ongoing fees and maintenance.

Crisis averted! You would think....

Why Pick Only ONE Agent to Sell Your Property In South London? (VIDEO)

Why you should only pick 1 agent 

So you are keen to sell and you think "right, I'll just pick 3 agents, triple my exposure to the market and get my property sold quicker.

Bad thinking. Here are my top 3 reasons why you should only pick ONE agent. Click here for the video!

 So if you're in the market for selling, or letting for that matter drop me a line and let's get you up and running to get you the best result. Just curious? Check out my instant valuation tool here!

 

Time to RUN for South London Landlords?

 

Survey

A new survey has found that only 1 in 10 landlords in Clapham are currently planning to expand their portfolios. The survey, which was conducted by the Deposit Protection Service, found that the majority of landlords who do intend to buy another investment property are looking to do so within the next two years. The survey's findings come as a surprise to some, as Clapham is a popular area for landlords due to its high rental yields. However, the survey's authors believe that the current economic climate is playing a role in landlords' decision-making.

"The economic pressures that are affecting most sectors will inevitably also influence the strategies of buy-to-let property owners too," said Matt Trevett, Managing Director at The DPS. "Although it's interesting to note that most landlords who intend to increase their portfolios are considering doing so over the next two years."

The survey also found that landlords in Clapham who are looking to buy another investment property are increasingly considering buying in different areas. This is likely due to the rising cost of property in Clapham, which has made it more difficult for landlords to find affordable investment properties in the area. "Financial pressures on landlords may mean they look further afield to buy property to suit their own budgets and to find the best rental yields," said Paul Fryers, Managing Director at Zephyr Homeloans. "Although our buy-to-let customers invest in properties all over the UK, we have seen particularly high activity recently across East Anglia, the North West, the South East as well as Yorkshire and the Humber."

The survey's findings suggest that Clapham landlords are hesitant to expand their portfolios in the current economic climate. However, the survey also found that many landlords are still looking to buy another investment property in the next two years. It remains to be seen whether the economic climate will improve enough to encourage more landlords in Clapham to expand their portfolios in the near future.

So is it the right time to sell? Or are you hanging tight and increasing rents as lettings supply dwindles? Either way check out my online valuation tool and see what your property is worth today, or drop me a line to chat further!

76 Days to Sell a Property in Clapham

Whether you are a Clapham landlord looking to liquidate your buy to let investment or a homeowner looking to sell your home, finding a buyer and selling your property can take an annoyingly long time. It is a step-by-step process that can take months and months. In fact, one of the worst parts of the house selling process is the not knowing how long you might be stuck at each step. At the moment, looking at every estate agent in Clapham, independent research shows it is taking on average 76 days from the property coming on the market for it to be sold subject to contract.

But trust me ... that is just the start of a long journey on the house selling/buying process. The journey is a long one and therefore, in this article, I want to take you through the standard itinerary for each step of the house selling procedure in Clapham.

Step 1 – Find a Buyer

You need to instruct an estate agent (of course we can help you with that) who will talk through a marketing strategy and pricing strategy to enable you to find a buyer that fits your circumstances. 76 days might be the average in Clapham, yet as I have said many times, the Clapham property market is like a fly’s eye, split up into lots of little micro markets.

Looking at that independent research, (which only focused on Clapham), it was interesting to see how the different price bands (i.e. different micro markets) are currently performing, when it comes down to the average number of days it takes to find a buyer for a property in Clapham.

Interestingly, I thought I would see which price band had the highest proportion of properties sold (stc)... again – fascinating!

So, now you have a buyer ... what next?

There are a variety of distinctive issues at play when selling your property in Clapham, together with the involvement of a wide and varied range of professionals who get involved in that process. That means there is are enormous differences in how long it takes from one property to another. Moving forward to the next steps, these are the average lengths of time it takes for each step to give you some idea of what to expect.

Step 2 - Sort Solicitors (and Mortgage)

Again, something we can point you in the right direction to, but it will take a good few weeks for your buyer to apply and sort their mortgage and for your solicitors to prepare the legal paper work to send to the buyer.

Step 3 – Legal Work and Survey

Once you buyer’s solicitor receives the paperwork from your solicitor, then your buyer’s solicitor applies for local searches from the local authority (to ensure no motorways etc., are going to be built in the back garden!). These Searches can take a number of weeks to be returned to the buyer solicitors from the council, from which questions will be raised by the buyer’s solicitor to your solicitor (trust me – you don’t see a tenth of the work that goes on behind closed doors to get the sale through to completion). Meanwhile, the surveyor will check the property to ensure it is worth the money and structurally sound. Overall, this step can take between 3 and 6 weeks (sometimes more!).

Step 4 – Exchange of Contracts

Assuming all the mortgage, survey and legal work comes back ok, both the buyer and solicitor sign contracts, the solicitors then perform “Exchange of Contracts”. When contracts are exchanged, this is the first time both buyer and seller are tied in. Before then, they can walk away ... and you are probably 4 or 5 months down the line from having put up the for sale board – this isn’t a quick process! BUT hold on ... we aren’t there yet!

Step 5 – Completion

Between a week and up to six weeks after exchange of contracts, the buyer solicitor sends the purchase money to the seller’s solicitor, and once that arrives, the keys will be given to the buyer … phew!

To conclude, all in all, you are looking at a good four, five even six months from putting the for-sale board up to moving out.

If you are thinking of selling your Clapham home or if you are a Clapham landlord, hoping to sell your buy to let property (with tenants in), either way, if you want a chat to ensure you get a decent price with minimal fuss ... drop me a message or pick up the phone.

Do let me know if you are looking to invest and you could use a hand. if you are a ready and able investor sign up to my list that will bring packaged deals to your inbox! If you are looking for no-obligation advice then drop me a line and let's start the conversation.

Want your property in Clapham sold? Price it with a 0 in mind...

No, don't sell it for naught, that would be daft. How often have you bought something at £3.99? £2.99? There's always a penny taken off the price to make it appear magically cheaper. Great marketing tactics for a tin of baked beans, a top, a pair of shoes, all good.

What about property?

If you are selling arguably your most expensive asset surely you'd want the best price? Is that the highest price? Maybe. But you certainly want the best target audience, and that would most certainly be the biggest audience.

Imagine this. You are selling a flat for £500,000. Most agents would market this at £499,950 or £499,995. To make it look cheaper. Wrong approach I say. Why? Well go to rightmove in your area and punch in that you are looking up to £499,950. You can't. You can go up to £500,000 though. And guess what shows up first. That's right! The flat at £500,000. Well the flats plural. There's a few. And like the second page of google nobody visits, the flats at 499,950 are on page 2. Which gets less hits. And less viewings. And less interest. And less offers... you see where this is going?

You want your property in people's faces when you are selling. And conversely if you are after a bargain... look at page 2 in your search results. Chances are there will be less eyes there than on page one!

If you'd like some pointers with your purchase, investment, sale or letting feel free to pick up the phone and give me a call. Happy to talk. Or if it's easier drop me a line on jeroen@claphampropertyblog.com.