Struggling to sell property in South London - what's going on with market?

[meggs230]

Hello all, thought I would try and get some thoughts on our situation.

We have had our flat in South London on the market since early summer, we had a few offers initially and took one that was about 5% below asking, unfortunately it fell through (unsure of reason but our agent said they were being cautious and were maybe over-stretching themselves).

It's now been back on the market for over a month and we've had a trickle of viewings and no offers. Is this just Brexit uncertainty? Should we hold off and try and sell next year instead? Ideally, we want to move out of London asap. Would renting it out be another good option?

If you look on the property threads it's littered with 'why isn't my house selling' stories. Unfortunately the uncertainty of Brexit is putting a lot of people off. We had to move in SE London earlier this year and took a 6% drop but got the same discount off our purchase further out. I think people are on the look out for bargains as the London market is overheated. Also the Government has hinted at stamp duty changes which will come into effect next year? That might boost the sub £500K market.

Brexit won't stabilise any time soon in my opinion as leaving is just the start. The economy will stagnate or fall I think for a few years at least. You could rent out but tax and rental rules are changing and you would need to be really clued up on your legal responsibilities as a landlord - it's not an easy option. Make sure you have ££ as a buffer with the rental option.

Whether renting is a good option depends on a number of things but unlikely for vast majority of people.

The market for flats probably isn’t the best as many landlords are getting rid of properties due to recent tax changes. Many of the areas are also going down in price so it’s a buyers market - they’re looking for the best and haggle.

2nd hand flat market in london is dead... landlords arent buying anymore, and ftbs use htb to buy new build flats!
Theres not much you can do about it to be honest

Everyone is waiting for the housing market to plummet and the repossessions to start, already happening in London.

A couple of friends have told me their 20 something DC have picked up real bargains when flat hunting in South London. They suggest the market is dead and the only people selling are those willing to offer substantial discounts.

Normally BTL buyers would move in, but the combination of Government policies and local licensing regimes (Greenwich is particularly onerous and expensive) mean they are staying clear. I would sell, not let, and rely on getting a similar discount on your next property.

I wouldn't go as far as saying that market is dead and it's nothing like the last recession (not yet at least).

It’s certainly stagnant at the moment in London, but I’m not sure I’d go so far as to say there are “bargains” to be had? Most people simply aren’t prepared to give it away and are sitting tight.

Apparently it is the second hand flat market that is really hit. Lots of new builds out there. People wanting to make a step up often cant wait, but prospectivebuyers can. Plus the cooling off of BTL investment has the greatest impact there.

There is no doubt. Some people are getting bargains. If DC were in a position to buy, I would tell them to wait...unless the price was absolutely right.

Can you post a link to your flat - maybe could suggest ways to improve the presentation?...

Post a link?
We have just sold out 2 bed flat in S London - 2 asking price offers within a week so I think the demand is there. First buyers seem to still be keen and I guess that is the market you are targeting?

Plus flat sellers are often not owner occupiers. Landlords are nervous. They dont see capital gains ahead. They do see Corbyn. They have also costed the impact of achieving a HMO licence on a two bed.

So market both to let and to buy. And if you get a half decent offer, grab it and run.