Get in touch

Speak to us now on live chat

Speak to someone on the phone

We can call you

Send us an email

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Please provide us with the below details and one of our local experts will be in contact.

Please provide us with the below details and one of our local experts will be in contact.

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Get in touch
  • Speak to us now on live chat
  • Speak to someone on the phone
  • We can call you
  • Send us an email
Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Go Back

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Contact British property market has peaked, estate agency boss says

Fill in the form below to get in touch

Sales or Lettings enquiry

Your Details

We will use your data for the purpose of your enquiry. After we have responded, we would also like to send you emails with information on our other products and services, including our regular newsletter which contains special offers, property photos, hot topics and useful tips.
Please tick this box if you are happy to receive this and remember you can change your preferences at any time. If you would like to know more about how we use your data please visit our Privacy Notice here

All done

We received your message. Our expert local team will review your details and get back to you shortly.

If you need any more information call us on

Contact Brentford area

Fill in the form below to get in touch

Your Details

We will use your data for the purpose of your enquiry. After we have responded, we would also like to send you emails with information on our other products and services, including our regular newsletter which contains special offers, property photos, hot topics and useful tips.
Please tick this box if you are happy to receive this and remember you can change your preferences at any time. If you would like to know more about how we use your data please visit our Privacy Notice here

All done

We received your message. Our expert local team will review your details and get back to you shortly.

If you need any more information call us on

Property Search Request Valuation
Search
Call us 02080225147

British property market has peaked, estate agency boss says

Sellers will have to cut prices to find buyers, says Paul Smith, whose company operates Haart, Felicity J Lord and others.

The boss of one of Britain’s biggest estate agent chains appears to have called the top of the property market, saying there has been a big slump in demand from buyers after the nation has “reached the limit” on house prices.

Paul Smith, whose company operates the Haart, Felicity J Lord, Spicer McColl and Darlows chains across the UK, said there was “trouble in paradise” and sellers would have to cut prices to find buyers.

“We are starting to see a big slump in buyer demand with registrations down a huge 46% across the UK in just one month,” he said.

Smith warned that prices may be peaking after a 12% rise year-on-year rise to a record high of just over 234,000, nearly nine times the average UK income.

“We believe the nation has now neared the limit in terms of price rises. Our data is already showing a slowdown in both house price growth and transaction levels. In order to maintain healthy sales levels sellers need to be much more realistic with their asking prices properties are in danger of being overvalued and these homes will struggle to sell.”

Smith’s gloomy prediction from an estate agent’s point of view represents a sharp reversal from more optimistic statements he has issued about the market in recent weeks, but he said in the longer term the market will remain attractive.

But it comes after figures from HM Revenue & Customs revealed a dramatic collapse in the number of house sales in April after a boom in March to beat higher stamp duty rates on second homes.
Across the UK just 70,690 residential properties were sold in April compared to 173,430 in March as landlords rushed to beat the tax hike. The sharp drop in April took housing market activity back to the low levels last seen during the financial crash, but property experts said the decline was only to be expected after a bumper March.

David Brown of agents Marsh & Parsons said: “After most peaks comes a corresponding trough. The goalposts simply changed overnight, making it incomparable to an extremely hectic March, which was characterised by unparalleled activity from second home owners and buy-to-let investors rushing through completions.”

Many potential buyers are expected to hold off making purchases until they know the outcome of the EU referendum, potentially pushing down prices in the short term. Then from April next year, another big cut in tax relief for buy-to-let landlords is likely to depress demand.

Nationwide building society, which reported bumper lending and profits figures , said in future buy-to-let borrowers would face a much more demanding test before being granted a mortgage.
Prices have already begun to fall at the top end of the London market , with analysts split as to how far the falls will spread into the wider market. In Hampstead and Notting Hill, prices are down by as much as 10%, while agents Douglas Gordon said “overinflated prices [are] stymying sales” in markets further out.

But the continued ready availability of cheap mortgages, plus a persistent shortage of newly built houses, may see first-time buyers fill the gap left by landlords and keep prices high. The average interest rate on a 90% mortgage where the buyer puts up a deposit worth 10% of the value of the property has fallen from 5.97% in 2011 to just 3.01% today, according to data company Moneyfacts.

Doug Crawford of conveyancing company MyHomeMove said: “While house prices are high, buyers who can raise a deposit have been given a boost by extremely attractive mortgage rates which support borrowing.

“There are also signs of solid improvement in lending to first time buyers, such as a growth in high loan-to-value (LTV) mortgages available. Our forecast growth in sales is based on first-time buyers being able to access the high LTV mortgage products that will support their borrowing.”

The public finances have also enjoyed a large, albeit temporary, gain from the boom-and-bust in the property market, with stamp duty receipts hitting a record high of 1.2bn in April. Over the last 12 months the Treasury has collected 11bn from stamp duty, almost as much as inheritance tax and capital gains tax combined, and much higher than budget forecasts, according to an analysis by accountants Blick Rothenberg.

Eight spectacular properties to watch out for this autumn Read More
South London sees high levels of tenant demand Read More
An exceptionally busy lettings market throughout London Read More
What should cohabiting couples consider before buying a property? Read More
Hammersmith Bridge reopens to pedestrians Read More
What are the changes to the Right to Rent legislation? Read More
What does the lettings market for family homes look like in central London? Read More
Exceptional demand for family homes in south London Read More
London sales market set for one of the busiest summers on record Read More
Nine of the most luxurious homes on the market Read More

Marsh & Parsons is registered in England (Company No. 05377981) Registered office address: 80 Hammersmith Road, London, W14 8UD (VAT No. GB 842 7959 83) | Copyright © Marsh & Parsons 2018

Client Money Protection is provided by Propertymark. The redress scheme for Marsh & Parsons is The Property Ombudsman Scheme. Calls may be recorded and/or monitored for training and/or data protection purposes. We are members of The Property Ombudsman (TPO), there to protect your interests. We abide by the TPO code of conduct.

We may refer you to recommended providers of ancillary services such as Financial Services and Insurance. We may receive a referral fee for recommending their services. You are not under any obligation to use the services of the recommended provider, which may also be an associated company of Marsh & Parsons.