How do people manage to sell (SW London, zone 4) 2 bed flats these days?

[FlatSeller]

We've put our 2 bed flat on the market in early March 2020, fast forward, May 2022 and we are still trying to sell. Dropped the price by over 10% from what we bought it for in 2017. Back in 2017, just after Brexit, we thought we would go for a small flat in a good location, keep it for 3-4 years as a stepping stone, then move up the ladder somewhere local.
Fast forward we are still stuck in it, no buyers, 1-2 viewings a month. It's in a great condition, has almost 100 years on lease, great location for commute to central London, good schools around, lots of parks, green space in walking distance, well kept purpose built block, lowish service charge, tiny ground rent. Changed agent 4 times in these years. Feedback we are getting is that the flat is smallish, kitchen is tiny, which is true, but not an unusual thing for London and that's not something we can change.
Shall we try an auction?
Hoping for some positive stories / selling strategies.
Thank you!

Don't think renting is an option as 1) need the cash to buy a house; 2) stamp duty on second property would be massive (extra 5%); 3) with both of us in full time jobs and hitting the highest tax brackets, income tax will make the whole exercise loss making

You should put a link on, mn is great for helping with tips

The rule of thumb is generally that people will only pay what the believe a houses worth is. For that length of time, I'd suggest it's overpriced. Agree with a PP, a link would be helpful.

Stick a link on here. You would be better to price drop and cut your losses.

The situation may change eventually as people are hit by cost of living rises and need to downsize. But atm lots of people sold during the stamp duty holiday and are looking to upsize for a garden and wfh office.

If you rent it, you can release much of the equity via a buy by I let mortgage and use that for your onward purchase.

We're in SE London and 2 beds are selling well locally. It's the 1 beds that are struggling. How small is it?

it's about 55sqm

It’s difficult to tell without seeing.
2015/2016 was top of the market in SW London so guessing you bought high?

Thats quite small for 2 bedrooms. Do you have any outside space?

What are the photos like? Have you decluttered ruthlessly even putting things into storage as it’s crucial with a smaller space?

I’m afraid to say it’s probably the price.
I honestly don’t think serious buyers will be much influenced by the often recommended ‘dressing’ or decluttering - that is assuming that it’s in a reasonably presentable state anyway.

Is there a good floor plan with measurements? Plus details of length of lease, low ground rent etc? And a photo of the outside?

Estate agents can be pretty hopeless at including what to many people is essential info. Lack of which may well put off viewers, if there are plenty of others where blurbs do include what they need to know.,

Let us see it, you will get better advice

It's likely the price, and also the fact that having been on the market that length of time it won't be coming up on rightmove/zoopla searches any more (many people filter by on the market 2 weeks or less) - I think if you drop the price by more than 10% it starts to re-appear as a new property on rightmove at least but TBH I'd think of starting all over again with a new agent, new pics and a realistic price...

Straight off, as a buyer I would avoid anything with a lease under 100 years. Most new leases are 1000 - ie similar to freeholds. There has been a change in leasing laws. Can you look into having it extended? I wouldn't even look at a flat with under 100years on it if similar flats at similar prices in the area have 1k leases.

Usual things - have you decluttered to show space and light?
Do you have outside space? If not, have you given the illusion of it with lots of white walls, great lighting and green plants?

We’re SE, we bought a 2 bed flat in 2019 for £20k less than the previous buyers had bought it for in 2017 and if we sold it today I think it would be a similar level as 2019 (and we have a garden). Sorry to say but I think same as 2017 is likely to be too high.

A lease under 100 years would put me off because I'd be thinking I'd need to renew it before being able to sell in the future.

How long is Rightmove showing it's been listed for? That might be off-putting to some people.

Aside from that, it's the price. It's always the price.

The feedback you've had suggests that viewers don't think it's value for money - e.g. they'd expect a bigger kitchen. Given it's quite small for a two bed, if you want to sell it quickly I'd price it at the upper end of the one bed range. You'll then hopefully pull in viewers who thought they'd only be able to afford a one bed. But sadly, as others have said, it will mean taking a bigger hit on the sale price.

Is it an old building or purpose built?

Has anyone made an offer or dug for further info or have you not got past the viewing? Could it be something to do with the management of the freehold? are there plans for major works? Are there debts or loads of non payers?

Does the building look tidy? Car park, bins gates etc. Any noise issues, or problem neighbours?

Any cladding?

Are there any plans locally to develop? build on wasteland etc

Plans to decrease public transport links, fewer trains?

Does the hallway look tidy and maintained? Buzzers work? piles of post at the door? Can you hears your neighbours as you walk to your flat?

How does you flat look inside? Does it smell?

Compare with what else is on the market? What are places selling for in your area. If you've had it listed all this time you may have created the problem that people know it's hard to sell. You may just need to take it off the market, change the decor so it's not easily recognisable and then list it again later in the year.

If you give us a link we may be able to help.

Watching with interest as a close relative is about to put a similar flat on the market.

It’s true that some people moved out of London due to lockdown/being able to WFH, but some of these are having to move back to London as they’re being called back to the office. So the market for London flats might pick up.

Is the market saturated with similar properties OP? I know a lot of people moved out of London during the pandemic, so are there a lot of properties similar to yours on the market at the moment?

If your place is quite small, have you had a de-clutter and moved as much stuff into storage as you can? A large mirror, strategically placed, can also give the illusion of size. There is not much you can do about a small kitchen, but again if it's crowded with a big table and chairs, consider removing it and either replacing with a small one or a gate-leg table that can be folded away - anything to make it look larger than it is. If walls are painted dark colours too, repaint in a light colour as that will make rooms seem larger and brighter.

the building is an old one, 1920-1940, very well built, brick walls, low rise, no cladding issues, all looking nice and tidy, well maintained, free car park on premises, green leafy area.

I wouldn't want a flat with 100 years or less on the lease, which is daft really but I have been educated to think "I won't be able to sell it again with <100 years on the lease."

People expect a discount for what seems like a shorter lease. Have you investigated how much it would cost to extend the lease? What have the various agents said?

Sounds like your best bet is to drop the price by a chunk and then ask for "offers over". If you dont like the offers you get, you dont have to take them. But it would show you if price is the problem.

Pop the link on here and people will be able to tell you why

I gave up trying to sell mine and now rent it out (requires change to mortgage terms). I have to sell soon because baby 2 is on the way and we can barely fit three of us in a 2 bed with all the stuff kids accrue, let alone four of us

I bought a London flat last year in SE London and it's a MUCH cheaper area. People can probably get a better quality 2 bed flat in the likes of West Norwood, Crystal Palace, Lewisham etc for a good 2-300k cheaper than they would in, say, Streatham, Balham or Tooting. How much is yours on for?

I also wouldn't entertain anything with less than 100 years on the lease or without a garden (communal is fine, but I'd want some private outdoor space).

nobody on here will know better than estate agents, sorry to break it to you all!

There's a few things at play.

I think an affordability ceiling in many areas of London has hit & historically so much movement depended on equity.

Moving is so expensive that people have realised they want to limit the times they do it.

Apparently more FTBs than ever before left London to buy in the last few yrs & they would have been the natural buyers.

I'm in z3 & the vast majority of flats are selling for the prices they were 4/5 yrs ago.