Its latest research shows that current stock levels are 60% lower than the same period a year ago and 93% down on the same period in 2008. Where in the past the average buyer could reasonably expect to view upwards of ten properties before making an offer, they are now lucky to find just three or four which match their criteria.
‘Buyers in Central London are facing a very different market in 2011. We are seeing lots of disappointed buyers who have held off from making an offer in the hope of securing more viewings and consequently missed out on a property they liked. If they see a suitable property, they should act quickly to secure it rather than waiting for more choice to come onto the market,’ said James Hyman, partner for residential sales at Cluttons.
‘Unless homeowners have specific demographic reasons for moving, such as a new job or growing family, there is little incentive to sell currently. Central London property has proved to be the only stable investment throughout the downturn, and fewer and fewer people are willing to relinquish their interest in it,’ he explained.
The consultants have also found that Pimlico is fast becoming a haven for London buyers seeking centrally located homes for often half the price of those a few minutes away in Belgravia.
With investors and international buyers competing fiercely for the limited property for sale in prime Central London, the increasingly family orientated market in Pimlico is attracting buyers seeking more affordable family homes in the capital with a long term view. They are relaxed about buying as an investment and tend to sell up only when they have children and leave the city.
Properties in Pimlico are selling for approximately £750 to £1,000 per square foot, compared to £2,000 per square foot just a short walk away in sought after Belgravia, a hotspot for international investors and the super rich. This equates to around £2.5 million for a good quality family home in Pimlico, compared to £4 to 6 million in Belgravia.
‘Pimlico remains a pocket of reasonably priced homes in the centre of London, attracting young professionals such as lawyers and city workers who want a stylish, central location but who wish to avoid paying Belgravia prices,’ said Toby Whittome, sales manager at Cluttons' Belgravia office.
‘Many domestic buyers seeking family homes have been priced out of central London, but Pimlico has so far avoided the prime London label among international buyers and continues to offer excellent value for money,’ he added.
