London flat not selling

[DespairingHomeowner]

Just wondering what people’s experiences are with flats in London at the moment? I have a 2 bed upstairs flat which I put on the market mid July 5/6 viewings, no offers. Dropped price 25k which generated 2 viewings and now interest has dried up entirely

My options now seem to be to undercut the market (it’s on at 425 so down to eg 410 for 400) or wait til next year perhaps

Pictures are good but agent doesn’t seem to make much effort... how can I encourage them, how much time should I give them, and if I go to an other agent should I just take it off now & remarket in Spring?

No garden of my own and downstairs neighbours garden is scruffy and overgrown which is part of my problem... it’s a nice flat and spacious though. I bought for about 5% under average value for area as flat was scruffy (needed full replaster etc) .. I can afford to drop by same if needs be (but want to make sure I’m doing the right thing. If it’s not the price but no interest in flats then not worth doing).

Other negatives:. Flat has a dated/worn kitchen (fine but cheap laminate put in to sell around 10 years ago, it’s a ‘I can live with it for a year or 2 kitchen’). No other major negatives, and don’t want to change kitchen as won’t get money back but know this is holding it back.

My motivation for moving is to go to a house - wondering whether I’d be better off waiting til Spring, or trying to get someone interested for a BTL now ... I’d never have believed before Covid that a zone 2 Victorian conversion, 20 min to C London would be hard to sell but this market seems to be very tough

When people day not having a garden is an issue- is that a flat with no outside space at all? Or are you including communal gardens into that?

115 is a long lease... 35 years until you pay any extra to renew
Some flats in London sell with 20 year leases in prime London... and they dont go cheap

The market is unlikely to improve in the Spring as the stamp duty holiday ends and more people face redundancies. I'd say wait til 2022 if you could, or take the hit now.

@titnomatani: communal gardens/balconies make a difference. I’m also seeing some flats where people have put Astro turf on a flat roof as a ‘roof terrace ‘ (ridiculous IMO)

More positive feedback from last nights viewing and a couple more today & 4 on Saturday so hoping I will know where I stand by Monday or so

I’m also going away for a few days next week so 2nd viewings can happen quickly (as living in the house while keeping it to show home standard is a big pain!!)

I agree to shift it as can’t see the London market bouncing back v quickly as the recession will be deep and access to finance challenging......even renting it out might not be as lucrative as usual.

Def sell as chain free as this will also put you in the advantageous position as a free chain buyer.

I don’t believe that COVID is the end of city living or working. We are social animals and people (especially young) need and want face to face working to train, socialise and advance their careers. I believe people will be champing at the bit to get back to a buzzy work environment.......and if even we were all stuck working from home indefinitely then fun buzzy local neighbourhoods with access to much needed social opportunities are even more important.

Are you moving to a house in the same area or moving further afield?

OP I know many other people in similar situations. Flats on my road, Zone 2, amazing transport links sell for somewhere around 500k. Some are currently on at 600k. I've seen some drop their prices to significantly below market value, around 400k, just to get a sale, and even those haven't sold. I do think it's truly to do with no mortgage availability, because 400k is a true bargain where I live yet it's not sold. No mortgages for FTB means it doesn't really matter how much people drop prices because 20% deposit is a huge amount in London. I personally think flats in London will be able to sell, but in a post-Covid era. I'd wait it out 3 years or so

I’m also seeing some flats where people have put Astro turf on a flat roof as a ‘roof terrace ‘ (ridiculous IMO)

Why is this 'ridiculous'? Don't be such a snob DepairingHomeowner! My green astro turf gets admiring comments whenever anyone visits. I have a 100ft roof terrace in southwest London and I can assure you the grey cement tiles looked awful. Covering a large section with astro turf brightened it up and together with planted pots makes it a garden that we all enjoy especially the kids.

Whereabouts are you @Ltc2020?

The ripple effect of the City of London saying many of their staff can WFH is bound to have an effect while COVID lasts if not longer

I think the long term WFH is being overplayed. Companies - yes, including City companies - are realising that while existing teams can do their existing jobs very effectively from home, bringing on new joiners, starting new projects or just informally bouncing ideas around suffers a lot when you aren't face to face. (And having worked in split-location teams for years, I could have told them that!). Plus while the settled down couples and parents with nice houses want to WFH, the ambitious kids in houseshares WANT to be in the office, going for drinks after work and building their networks.

I think most City jobs will end up as split location - ranging from 3 days a week in the office at the tight end to a couple of days a month at the loose end, which is basically what the trend was pre-covid anyway.

Some people at the looser end will be happy to move further out and suffer the occasional long commute (although unless they are prepared to stay overnight in London they will still be limited by having to get in for a reasonable start time) but I think a lot of people who are in more than one day a week won;t want a much longer commute than they already have.

However, while I think WFH is being overplayed, I also think the covid/Brexit recession is being underplayed so in the short term (5 to 8 years) I do expect London (and UK in general) property to slump UNLESS we end up with sterling tanking and inflation masking the real fall.

Good luck with everything OP!

I've been following this thread, think it's the correct decision to go for it and try to get it sold now before the stamp duty kicks back in, and the economy suffers more, plus with all the predicted redundancies.

Alexalee I know, I've sold one in the past that had less than 20yrs lease in prime London - back ten it actually increased in value 5yrs after i bought it! Oh the golden days (c 2012) BUT the prime market is adifferent subject. Anything 'just good' i.e. no the top spots would not sell well with a short lease. OP's lease is fine for her area but it will be going down in value slowly with each year, especially in current climate. Share of freehold would sell much better (or a long new 900 lease). All I@m saying that it's best to sell now by dropping the price -which she is doing.

I also have a Victorian conversion that i am planning on selling - it's three bedrooms and with a front outdoor space in SE London zone 3. My neighbours gardens at the front could do with attention, so i will be offering to clean these up prior to photographs being taken - first impressions count. Don't be too disheartened, there is someone out there who wants to own your home. All the best.

Op your lease length is decent (but will depend on ground rent and the conditions of it ie if it doubles, and service charges). Looks like this is the time to move to your next home.

I was sorry to see london looking so bare last week. Glad I moved out when I did. There seemed nothing to miss. I hope it improves.

Of course London will improve! Property prices may go down a little - but that's long overdue with a ridiculous price inflation recently - but the city will be back to normal, in time - no dount. Been through worse, bombing in ww2 for one.

*no doubt (and I mean in a short time, unless we are struck with yet another new virus next year, that is).

What area are you in? I’m in Tooting (the mitcham end) and 2 bed flats are on round here for £275k upwards so £425 seems very expensive but it depends whereabouts you are

@sunshinesupermum: that sounds nice. What I saw was about 6m2 spot of flat roof, accessed by crawling out of a window, no safety rail ... so very different!!

No safety rail? That does sound rather horrid as well as dangerous!

Little update after the weekend... of my 8 viewers, it seems 3 are somewhat interested, with 1 second viewing booked in for Thu, & 3 additional people viewing this week

Hoping to have some offers in coming days/maybe by next week...

That sounds promising. Fingers crossed!

That's tentatively good news @DespairingHomeowner
Fingers crossed for you.

Wow that’s great — you might have a bidding war in the end!

Where are you planning to move to?

Give the agents a deadline. Helps focus their minds!

I was following this last week but didn't comment. I think you were very wise to reduce the price now and hope you get some offers from all those viewings.