he firm says that this suggests that the best time to make an offer on a property, particularly one which has been languishing on the market for a while is during this quieter period.
Buyers face less competition and bidding wars are minimised as some buyers are slow to get off the ground with their search in the post Christmas and New Year period. In addition, poor weather and seasonal credit cards bills dent confidence, further depleting activity, it explains.
However, this does not apply to sellers in prime and central London, where low stock levels minimise the scope for buyers to secure a deal on quality homes in good locations and sales are achieved quickly. As a result, Cluttons’ own data shows price growth currently mirrors the average.
Reflecting the divergent tone of the two markets almost four years on from the depths of the post credit crunch slump, Prime Central London capital values rose by 6.4% in 2012 compared a slight fall in the Outer South East region according to Nationwide figures. The weakness in the housing market outside the capital makes it vulnerable to dips in demand as in the post Christmas period.
‘These figures show an opportunity for central London home owners to sell up and make a move to the country, or even to many of the outer London suburbs and villages,’ said Sue Foxley, head of research at Cluttons.
‘By capitalising on higher central London values, buyers have a the potential to secure a good price on a larger family home further out which may have been sitting on the market and where owners are looking to jump start 2013 with a long awaited home move. The weary housing market outside the capital offers plenty of scope for a New Year deal,’ she added.
However, buyers in the Home Counties continue to be disappointed by a lack of new houses for sale, according to top end property buying consultancy, The Buying Solution, part of Knight Frank.
‘As we begin the year, clients are noticeably more focused, but the quality of what's available to purchase is disappointing. A lot has been lingering on the market for several months or is still overpriced, and to date, there appears to be little new property likely to come onto the market, although it is obviously early in the selling season,’ said Mark Lawson, partner and head of the Home Counties team at The Buying Solution.
‘Lack of potential new property has also not been helped by the bad weather, as it delays sellers from deciding to market their properties, which is a shame, as the snow hasn't dampened buyer enthusiasm,’ he added.
According to Nick Mead, associate in the Home Counties team, there is interest across the prime areas in the Home Counties, with buyers looking in Beaconsfield, Henley, Esher, Cobham and Weybridge. Most are seeking to move out of London for more space and schooling.
‘We have noticed that budgets are slightly down on last year which may be due to the affect of the stamp duty increase on properties priced £2 million and above, but that said, those who are in the market to purchase are serious and ready to act,’ he explained.
‘We're hoping that more will come onto the market as we head into February, and the traditional spring selling season. We have noticed that sellers do appear to be more spontaneous these days whereas traditionally, selling agents used to be asked to advise months in advance of a sale, it is more common for them to be instructed to sell a house immediately after the initial meeting, so let's hope this remains the case and the supply picks up,’ he added.
