Paul Smith boss of Haart, Felicity J Lord, Spicer McColl and Darlows chains say market has “reached the limit”
The Boss of one of the biggest chains of Estate Agents, Paul Smith, has stated that the property market has “reached the limit” with buyer demand slumping. Sellers will now have to cut prices to attract buyers with the prime property market already in a downturn.
“We are starting to see a big slump in buyer demand with registrations down a huge 46% across the UK in just one month,” he said.
“We believe the nation has now neared the limit in terms of price rises. Our data is already showing a slowdown in both house price growth and transaction levels. In order to maintain healthy sales levels sellers need to be much more realistic with their asking prices – properties are in danger of being overvalued and these homes will struggle to sell.”
This is after a massive peak in March where investors rushed to buy properties to beat new stamp duty rules.
David Brown of agents Marsh & Parsons said: “After most peaks comes a corresponding trough. The goalposts simply changed overnight, making it incomparable to an extremely hectic March, which was characterised by unparalleled activity from second home owners and buy-to-let investors rushing through completions.”
However the benfit is for first time buyers with lower property prices and record low mortgage rates.
Doug Crawford of conveyancing company MyHomeMove said: “While house prices are high, buyers who can raise a deposit have been given a boost by extremely attractive mortgage rates which support borrowing.
“There are also signs of solid improvement in lending to first-time buyers, such as a growth in high loan-to-value mortgages available. Our forecast growth in sales is based on first-time buyers being able to access the high LTV mortgage products that will support their borrowing.”