Press Release: Buyers bid higher as competition in London property market intensifies
Mon 03 Aug 2009
The gap between offers made and asking prices in the central London property market is closing fast, highlighting the intense competition amongst buyers, according to estate agent Marsh & Parsons.
In January 2009, the average offer submitted was 8.7% below the asking price for the property. But, in July 2009, the difference between the two narrowed to just 3.9%, having been closing throughout the year.Peter Rollings, managing director of Marsh & Parsons, commented: "In the London market, theres no shortage of buyers with large deposits looking to take advantage of prices that are 20% lower than a year ago in some parts of the capital. Added to that, a chronic shortage of properties for sale has intensified competition amongst buyers. The result is rising asking prices and offers to match."
He added: "Weve seen a considerable number of properties go to best and final offers in recent weeks. Buyers simply dont have the same power to negotiate as they did at the start of the year and those who arent prepared to come closer to sellers expectations will almost certainly miss out."
Average house prices in London fell 16.8% from their peak in January 2008, when they stood at 355,966, to the trough in May 2009 (296,043). This was in line with the 17% fall nationally over the same period, but unlike other parts of the country, house prices are bouncing back strongest in London. In June 2009, house prices rose 2% in the capital, compared to 0.1% for all regions combined.*
Transaction levels in London have improved since the start of 2009, but remain historically low. In April 2009 (latest data available), there were 3,888 sales in London, a quarter (26%) higher than in January 2009 but 76% lower than at the market peak in August 2007.*
Peter Rollings said: "London house prices have rebounded faster than anyone expected, but the momentum is likely to slow. The threat of unemployment refuses to go away and, as transactions grow and the shortage of supply starts to ease in the autumn, we can expect a more modest rate of house price growth for the remainder of the year."
*Land Registry House Price Index
For further information please contact:
The Wriglesworth Consultancy
James Staunton / Tom Urpeth
0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons is an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.