Property buying agents Black Brick has published its January review and 2018 outlook, reporting grounds for optimism that the London property market will pick up in 2018.
However, prices are expected to remain flat given the continuing economic and political uncertainty, the firm writes, the shock to the market provided by increases to Stamp Duty is working its way through the system.
Knight Frank notes that the GBP5-10 million band – which was most affected by the Stamp Duty hike – has seen a quicker response, and more rapid recovery.
The agency adds that supply is still limited, finding that there were 8.2 per cent fewer homes worth over GBP1 million advertised for sale across England and Wales at the end of August compared with the same period in 2016. Above GBP2 million, the figure was 9.5 per cent down.
“While we don’t expect to see prices rise across the board in 2018, equally we don’t expect prices to fall either,” says Camilla Dell, Managing Partner at Black Brick. “We are seeing a return of confidence, although it does remain fragile. There is clearly pent-up demand.”
“The lack of stock coming onto the market means that we’ll see tough competition for the best in class and most attractively priced properties – indeed, we’re already seeing the return of gazumping in some cases,” adds Caspar Harvard-Walls, Black Brick Partner. “It shows the importance of working with a buying agent that gets early access to properties, or which can source off-market deals.”
