Why There Is a Huge Spike in Houses?

Huge spikes in buyers looking to purchase a house valued between £2,000,000 and £4,000,000.

The average for agreed sales falling through in the property market is 33%. As a realtor that specialises in Central London Mews houses, our fall through rate is considerably lower because our customers usually come to us with the intention of buying a home located in Central London. We aim our services to reach a particular demographic, often consisting of wealthy individuals that are financially able to purchase a London mews home. This means they rarely require a mortgage and are usually chain free, so they’re unlikely to exit a transaction once the process has started.

However, since 2016, the fall through rates for house sales in excess of £2,000,000 have slowly risen. Fortunately, that’s set to change despite Brexit. This year alone, we’ve maintained a rate of just 24% which, given the political uncertainty in the country, is still considered a very good number. However, once we analyze the numbers and examine the spread of our fall through rate, it’s clear that Brexit is not the cause of this gradual increase but something else.

This year, we’ve seen around 55% of our £2,000,000 plus sales agreed fall to transact, whereas 91% of our sub £2,000,000 sales agreed and went through without a problem. The most common excuse for these failed transactions was Stamp Duty, and it wasn’t just buyers that raised this issue either.

This has caused a backlog of buyers and sellers that are currently waiting for the right moment to purchase a new property. Graphs published by Rightmove show a huge spike in views for terraced houses valued between £2,000,000 and £4,000,000 that are located immediately around our four offices in Notting Hill, Hyde Park Estate, South Kensington and Hampstead.

This has caused a surge of applicants registering with us to look for houses in this price range. We’ve seen six asking price offers agreed in a row with the most recent sale being £3,500,000.

Although the country is still in a state of flux due to the recent elections, the turmoil should subside in the coming Spring months. Once the political uncertainty has settled down, we expect to see the market make a resounding comeback.

If you’re looking for a Central London Mews house, it’s a smart idea to work together with experts such as Lurot Brand that specialise in mews properties. With our unique blend of in-depth knowledge and city-wide coverage, we can quickly put buyers and sellers in touch to help you find the perfect property.
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