The headline figures continue to be poor.
In prime central London:
“21% fewer sales were agreed in Week 38 this year compared to the same seven-day period in 2024, and 11% fewer homes have changed hands in the capital’s prime postcodes in the year to date.” (Source – Primeresi)
Now single week comparisons are often very volatile, but transaction numbers are 11% down on last year. While not good, this is far from catastrophic especially considering the headwinds we have seen.
The changes to the non-dom rules and the increase in SDLT in April have not helped, but despite these issues the market was beginning to show some life in June only for that to come to a halt in late August when various papers suggested that a raft of property taxes might be brought in at the Budget.
This uncertainty has been compounded by Reeves’ decision to delay the Budget until 26th November. So, is it any surprise that there has been a drop in sales while buyers and sellers try to work out what the blazes is going on?
The government has been derided on several occasions for poor communication and this is just another example. As Bloomberg reports:
“For now, UK newspapers have filled the void with speculation about potential tax rises on property and banks, frustrating officials who see them as inaccurate, irresponsible and leading to real-world consequences for investor confidence.”
It is for the government to quell the rumours, but until they do transaction numbers, business investment and the general mood in the UK is likely to remain downbeat and nervous.
Nevertheless, it’s important to realise that the world is still turning. There are still many transactions happening and I have taken on several new clients in the last two weeks with budgets ranging from £1.5m to £8m.
To give you an idea of their profiles, one is a European family acquiring an apartment for their son and the family to use when they visit. One is a British family that want a pied-a-terre in London. Another is also a British family who are moving their London home to a more central area.
They are all cash buyers and highly successful in their various fields of expertise. I mention this because some people seem to think that my clients are simply too rich to care about money and don’t think through their decisions. This couldn’t be further from the truth. One of the reasons they are so successful is that they are incredibly analytical in addition to being highly driven and resilient to name but a few traits.
Does this mean that you should be jumping into the market too?
Frankly, I have no idea because everyone’s situation is different. I advise some people to start looking while others I advise to wait. But here are a few pieces of advice that I give to my clients who do wish to buy:
First – and this is nothing new – be patient and selective. As Warren Buffett says “It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. The same is true for property but we aim to buy wonderful properties at wonderful prices.
Second – Be in a position to move swiftly when a good opportunity arises. They are rarely available for long. As an example, an apartment in a fantastic address had a significant price reduction last Thursday and received an acceptable offer on Saturday. Yes, even in this market where apparently nothing is happening…
Third – Avoid putting yourself under time pressure. If you don’t need to buy for a year then start now (assuming you have the funds to transact if you find an opportunity). You never know when that great opportunity – i.e. your ideal home with a motivated seller – will become available.
It can also take 3-4 months to complete the purchase from agreeing the price. So why delay starting to look?
Most buyers wait thinking that they can time the market. The simple fact is that you can’t and it’s also not like the stock market where every share in a company, e.g. Royal Dutch Shell, falls at the same price. Individual sellers have different motivations for selling at different times and accept wildly different prices.
In short, it is far from a transparent or perfect market, so is it unreasonable to say that you can find great opportunities if you are actively looking?
But you have to be active and not just relying on the websites. Otherwise, you are merely a spectator and will not see the best opportunities. The good news is that if you are active, you will be miles ahead of everyone else as the great irony of a buyers’ market is that most people are too scared to buy which creates more opportunity for you.
You have two main goals:
- To find the best property your money can buy
- To acquire it for the lowest price possible
So, please remember to focus on “Best in Breed” properties and use the tested and proven strategies and tactics that will help you do this while avoiding the wasted time, money and stress suffered by the majority of buyers.
If you don’t know what these techniques are, then you can simply click here to request your free copy of my guide which reveals:
- How to find London’s finest off-market properties
- How to avoid the single most expensive mistake you will make
- 30+ pages of negotiation techniques to achieve the lowest price possible
- What you need to do become a “Dominant Buyer”
- How to handle the estate agents
And much more besides. These are the techniques I have been using and honing for over 23 years to find my clients their ideal homes and investments while acquiring them for prices they didn’t think possible.
“The property was 28% below our maximum budget and the price agreed was £335,000 below the maximum we had set for the property, so our investment in Jeremy more than paid for itself.” Mr & Mrs Cole (Chelsea)
So, simply click here now to request your free copy so that you avoid the most expensive mistakes buyers make and find the opportunities that the majority will miss.
