Author: ADMIN_nvp

Following yesterday’s conservative conference, and Theresa May’s speech confirming that Article 50 of the Lisbon Treaty will be invoked no later than March 2017, we have seen sterling reach a 3 year low against the euro (£1 =€1.1460) and a 31 year low against the $ (£1 = $1.2796).

The devaluation of sterling, as well as further vulnerability in the weeks ahead, bodes well for foreign buyers looking to take advantage and step into the PCL market this autumn. However, if the government wants to see inward investment to help prop up the market in PCL to bring transaction levels back in line with figures seen over the past couple of years then the chancellor is also going to have to review the current SDLT levels in this autumn’s budget.

Our message at NVP continues to be positive for those vendors who price their properties in line with current market conditions as we are seeing increased viewing levels on properties which are priced correctly.  The autumn market is a short one, so any vendors wanting to sell before Christmas need to listen to their estate agent to avoid disappointment.

Generation Rent is no longer simply theoretical. It’s here to stay for another decade, according to PWC, who say that by 2025 only 40% of Londoners will own their own home. That marks a U-turn on the situation in 2000, when 60% of Londoners were homeowners. By 2025, say PWC, the majority of 20-39 year olds will be renters.

This is standard practice in the rest of Europe and tenants will be looking to get greater security of tenure with rental contracts often lasting 5-10 years. Besides the security that offers to the tenant, landlords will have the benefit of tenants they know and can trust over a long period; no void periods to worry about; none of the expense and effort associated with having to find new tenants every year or so.

The rise of a long-term rental culture could also be seen to offer a more flexible and mobile lifestyle – a plus for young professionals who are still working out where they want to put down roots.  Renting will increasingly be seen less as a temporary last resort, but more as a viable and valid option. Good news for landlords and tenants alike.

It would seem that after a slow summer the autumn market is off to a good start with a substantial increase in viewings from prospective buyers. Vendors who are pricing their properties more realistically are attracting offers close to their asking prices.

Here at Nicolas Van Patrick we are relieved by this but not entirely surprised, as domestic buyers who are willing to step into the market now are getting 10-15% of capital values, from the peak of the market back in 2014, and international buyers whose currency is pegged to the US dollar or Euro buyers are getting another 10-15% on the currency conversion.

Bearing these significant discounts in mind, we’d say this is an excellent time to buy in London.