Cara, Foivos, Moin, Alex, Daisy, Matteo
If you follow the property headlines, you could be forgiven for wondering whether now is a good time to buy, sell, let or rent a home in London. The reality, however, is much more nuanced.
There isn’t one single London property market.
Conditions can vary considerably between areas, property types and even individual developments. Here at Alex & Matteo, we see this first-hand every day, particularly across areas such as Bermondsey, Rotherhithe, Canada Water and the wider SE16 property market.
So, rather than focusing solely on the headlines, we asked members of the Alex & Matteo team what they are actually seeing on the ground.
One theme that comes through strongly from the team is that the sales market continues to move, although buyers are being more considered about their decisions.
Matteo believes it is difficult to generalise about the London market because individual areas and property types are performing differently. In particular, he has seen leasehold property prices remain relatively stagnant in recent years, while freehold homes have continued to sell comparatively well.
That doesn’t mean leasehold properties aren’t selling. Pricing is key. If a property is positioned correctly for its particular market, there is still every opportunity to secure a sale.
You can hear more from Matteo on this subject HERE.
Imad, one of our Property Advisors, describes the market as “steady but cautious”. With mortgage rates still influencing affordability, buyers are thinking carefully about what represents good value. In his experience, some prime London properties continue to move well, while elsewhere realistic pricing is essential if sellers want to generate interest.
Moin, our Lettings Manager, also sees a steady sales market, with well-priced homes continuing to attract plenty of interest.
Cara, our Sales Progressor, sees what happens once an offer has been accepted.
While transactions are sometimes taking longer than buyers and sellers would ideally like, the important point is that people are still moving. Her advice is to be proactive, choose good solicitors and communicate any preferred timescales from the beginning of the transaction.
For anyone thinking about buying, Matteo’s advice is simple: don’t base such an important decision entirely on news headlines.
Research the market yourself. Look at previous sold prices and comparable properties and make sure you understand exactly what you are purchasing.
This becomes particularly important with leasehold homes. Buyers should establish the service charge and understand any other ongoing costs connected with the property before committing.
Preparation was something the whole team returned to.
Cara recommends having the information required for AML checks readily available and asking your estate agent for guidance when choosing solicitors, mortgage brokers or surveyors. Buying a property can be complicated, so there is no reason to be reluctant about asking questions during the process.
Imad recommends getting your mortgage arrangements in place before you begin seriously viewing properties. He also believes buyers shouldn’t necessarily be afraid to negotiate, particularly where a property has already been available for some time.
Moin’s advice is equally straightforward: know your budget and be prepared to act when you find the right property.
Most importantly, think about your purchase over the longer term.
There will probably never be a universally agreed “perfect” time to buy a property. If you find the right home, have done your research and can comfortably afford it, waiting indefinitely for perfect market conditions could mean missing the property that was right for you.
Interestingly, Matteo has also noticed investors returning to the market.
Last month, around 30% of the properties sold by Alex & Matteo went to investors – something he says the business has not seen at that level for approximately six years.
With investor activity particularly noticeable around Bermondsey and Canary Wharf, Matteo sees this as an encouraging indicator for the market ahead.
For sellers, one message was repeated throughout the team: price your property realistically.
Imad believes the first three weeks of marketing can be particularly important. His advice is to price honestly from the outset, present the property well and remain flexible when dealing with potential buyers.
Moin agrees that realistic pricing and good presentation can make a genuine difference to the level of interest a property receives.
There are other practical considerations too.
Think about when your property is likely to look its best. If one of its greatest selling points is a fantastic garden, for example, there may be advantages to launching during spring rather than the depths of winter.
Flexibility around viewings can also make a difference.
Matteo recommends giving prospective buyers the space to look around without being present wherever possible. You want people walking through the door to be able to imagine the property becoming their home.
Cara also stresses the importance of preparing for the legal process early.
This is particularly relevant with leasehold properties, where information may need to be obtained from third parties. Requesting the necessary documentation as soon as possible can help prevent avoidable delays later in the transaction.
On the lettings side, demand remains strong.
Alex has personally dealt with around 80–100 lets this year and is seeing considerable demand from tenants looking for more properties to become available.
At the same time, changes to rental legislation mean landlords need to be increasingly aware of their responsibilities.
Alex describes the rental reforms as some of the biggest changes landlords have faced for 20–30 years, but he is also keen to put that into perspective.
You can here more from Alex on this subject HERE.
Change does not necessarily mean landlords should panic. It means understanding the new requirements and making sure you are prepared for them.
Moin echoes that view. He describes it as a changing market in which rental demand remains strong, but believes it is increasingly important for landlords to keep up with new legislation and ensure their properties remain compliant.
Imad also believes the reforms represent a significant change. From his perspective, changes surrounding Section 21 and the greater importance of paperwork and communication could lead some landlords to reconsider their position.
However, his underlying message is that landlords who maintain their properties properly and look after their tenants should be well placed to adapt.
With strong rental demand and limited supply, good properties can move quickly.
Moin recommends being organised, having your paperwork ready and avoiding unnecessary delays when you find a property you genuinely like.
Imad similarly advises prospective tenants to have references, proof of income and their deposit organised. He also encourages tenants to read their tenancy documentation carefully and ask questions about repairs, bills and anything else they want clarified before committing.
Alex is particularly passionate about the standard of the properties Alex & Matteo brings to the rental market; the aim is to ensure properties are presented to the best possible standard for the tenants who will call them home.
For landlords, meanwhile, his advice goes beyond simply achieving the highest possible monthly rent.
Finding the right tenant can be much more valuable over the long term than chasing every last pound of rental income. A good relationship, a well-maintained property and clear communication can benefit everyone involved.
There are also specific considerations for some landlords. Overseas landlords, for example, should make sure they understand the relevant requirements of the Non-Resident Landlord Scheme.
Perhaps the most useful takeaway from speaking to the whole Alex & Matteo team is that there is no single answer to whether this is a “good” or “bad” property market.
As Imad points out, people still move because their lives change. Jobs change, families grow and people need more space. What has changed is that decisions are often more considered.
Well-priced homes are attracting buyers. Investors are returning to parts of the London market. Tenant demand remains strong.
And landlords who understand their responsibilities and offer good-quality homes continue to have opportunities.
The important thing is to understand your own position, take advice from people who genuinely know your local market and make decisions based on the property and circumstances in front of you rather than simply reacting to the latest headline.
As Cara puts it, people shouldn’t be afraid to reach out for help during the process – everyone is ultimately working towards the same goal.
If you’re thinking about selling or letting a property, looking for your next home or simply want to understand what’s currently happening in your part of the London property market, speak to the Alex & Matteo team. We’re always happy to share what we’re seeing on the ground and help you decide on the right next step.
