Buyers are still in love with Chiswick properties - but only if the price is right.
The £12bn rescue takeover of HBOS by Lloyds TSB is the result of a government brokered deal to save the country’s largest mortgage lender from a crisis of confidence.
This week's Lehman calamity on Wall Street and the collapse of the US sub-prime housing market is brought even closer to home, as HBOS holds 20 per cent of Britain's mortgages. Until the UK housing market stabilises, the financial crisis will remain acute, as anyone trying to sell their house is only too aware.
A continued inability of many buyers to secure mortgage finance is reflected in a collapse in transactions. A recent report by The Royal Institution of Chartered Surveyors (RICs) revealed that sales by estate agents in some areas are down to one property a week. The surveyors testify that 'realism' has returned to the market with many sellers dropping asking prices to more realistic levels.
Chiswick remains popular
RICS spokesperson Jeremy Leaf: “A lack of mortgage liquidity is the key issue which is keeping the housing market from showing any real sign of recovery. While money is scarce, many will continue to be denied the next step on the property ladder. “
In West London, potential buyers have also been deterred by high prices and reduced mortgage affordability. However, for those buyers who are able to secure the finance, Chiswick remains a popular choice says Christian Harper of Oliver Finn: “I can only speak from personal experience but we have certainly seen an increase in good quality buyers in Chiswick recently leading to an increase in deals. Amid reports that sales are one a week in some areas, we sold seven properties last week.”
As Sarah Beeny, presenter of Channel 4’s Property Ladder told The Telegraph last weekend: "I've had people I know who are selling their homes ringing up saying, 'What should I do?' All I've been able to say is 'If you really want to sell, then you have to drop the price'."
Be down-to-earth or be disappointed
Once people have the opportunity to digest what is happening worldwide, and take stock of the reality rather than all the press speculation, Harper feels that confidence will return to the housing market. “Homeowners are beginning to understand that they have to adjust prices according to the market to get a sale.
“A lot of agents will advise a higher asking price to get a property on their books but when it doesn’t sell in say 12 weeks, the vendor can decide to lower the price or fire the agent. That's all very well but most people can’t afford to lose the time as they’ll also lose the property they’re buying,” says Harper.
“Estate agents should bite the bullet and give the right advice to the client to get the right price for the market to bite. And if nothing happens, don’t leave it for weeks and months, get back within a couple of weeks to discuss the reasons why.
“Obviously it’s our job to get the highest possible price for clients but it’s a delicate balance of market conditions and vendors’ circumstances. Some are motivated by getting the highest price whilst others by the need to close the deal on their next property," says Harper.
Sometimes the best advice requires agents to have the guts to say at the valuation stage; ‘In the current market if you can't be realistic about the price, then don’t bother putting it on the market'.
