Property Archives | London Property Consultants

London property – Should I sell or buy now?

London property expert Simon Barnes, owner of H.Barnes & Co, looks at the prime central London property market and asks if October and November is a good time to buy or sell your London property; what issues will affect your decision to act now and whether or not you are best to wait until next year.

“In Prime Central London, October and November is a good time to sell London property because, after this, stock becomes limited. Sellers who have not sold by mid-November will inevitably sit tight until the spring. Current market conditions mean that price is key for buyers looking in London.

London property in Montpelier Walk, Knightsbridge — H. Barnes & Co is joint selling agent with Knight Frank’s Knightsbridge office for this £22.5m penthouse in Montpelier Walk, Knightsbridge, London SW7

If a London property which came on the market in September has still not sold, it’s more than likely to be too expensive and this creates a degree of ‘wiggle room’ for determined buyers.

Serious buyers are educated buyers and will have a keen eye for which properties are overpriced and which are priced to sell. They will have a good grasp of their market place. However, the flip side of waiting too long for prices to come down is that anything could happen by the end of the year and that may work against them as well as for them.

London Property in January

Come January, new properties will make their way onto the market and those which were available before Christmas but did not sell, will be jostling with competition from fresh stock and more likely to increase their asking prices to reflect the prices of new to market instructions. So a word of caution is that by leaving it until 2019 buyers may risk losing their window of negotiation with a seller who is desperate to agree a sale before this year ends.

Savvy buying agents know that estate agents have the ability to dig deep and reach for a second file at this time of year. In real terms, serious buyers having looked and rejected everything on the market now will be a reason for agents to pick up the phone, delve into their property bank and potentially uncover a few ‘not officially on the market’ properties.

We are always busy from now until Christmas trying to negotiate property deals before the New Year for clients who want to enjoy Christmas knowing that they have their new home all wrapped up. Like a lot of business in London, it comes down to who you know as much as what you know and on that note, I’d say that if you are determined to buy before Christmas there’s no time like the present.”

London Property: H. Barnes & Co is joint selling agent with Knight Frank’s Knightsbridge office for this £22.5m penthouse in Montpelier Walk, Knightsbridge, London SW7

by Simon Barnes

London calling – and Americans are a permanent fixture

Six months down the line since Donald Trump was inaugurated as US President there has been no significant sign of Americans packing their bags and fleeing to this side of the pond. With a strong economy, a week pound and a common language London must, to Americans, look more attractive than Canada, whose immigration website crashed when Trump’s victory was confirmed.

Americans living in London

Historically, London has always enjoyed a healthy relationship with Americans settling into cosy pockets of Prime Central London.

The majority migrate for work purposes, largely within the banking sector, although after the financial crisis and the crash of Lehman Bros, many left in a rush and have not returned as the financial services and banking industries revised their recruitment practices and their entire work ethic came under scrutiny.

Traditionally, Americans seek out the places where they feel most at home. Consequently, the American School in St John’s Wood has always attracted families coming from the US, who have enjoyed the choice of large family houses either for sale or rent. The family atmosphere and leafy green spaces on their doorstep with Regent’s Park, Primrose Hill, Belsize Park and Hampstead Heath all accessible and an easy journey into the City, have proven popular for many transatlantic move.

Other property hotspots for Americans are Notting Hill and Chelsea because incomers find the quirky civilized ‘Englishness’ of garden squares and a creative vibe appealing. Both areas offer a good infrastructure and facilities: excellent schools, improved transport links and good rail access to the country, great shops, restaurants, cafes and parks with a comprehensive range of property styles from good lateral apartments, traditional mansion blocks and decent family houses with gardens in both post codes.

My tip is that Bayswater will be where American investors are most likely to buy next because of all the plans underway to regenerate the area.

Leinster Mews, Bayswater | Lurot Brand

The American Embassy is moving to Nine Elms which is a sign of the times as Mayfair loses its embassy stronghold in favour of residential development. As long as London benefits from a fair share of American investment and talent then irrespective of what Trump attempts on his own turf, the benefits for London far outweigh the negatives.

by Simon Barnes

Post Brexit and the PCL property market

“The post Brexit effect certainly speeded up the summer recess and meant that in Prime Central London the property market tailed off sooner ahead of July.

This dormant period has perhaps lulled people in a false sense of security and the feelings about Brexit have faded away over the holidays, perhaps suggesting that it is not quite as bad as everyone made out initially.

The reality is that in central London people with a need or strong urge to move will, whether this is dictated by schooling, job relocation, or personal circumstances.

Good properties, priced at the correct market level, will sell; those that are not so good will sit around. Undoubtedly, Q4 will be a quieter three months than previously, as people wait, watch and see how the politicians handle negotiations and how the economy and market confidence fares. My feeling is that this is a good time for buyers to go in and make an offer and potentially drive a hard bargain – it is a buyers’ market.

While new buyers entering the market post Brexit and the summer will not be rushing in but playing a waiting game, old buyers who were in the market before the summer, will see this as a window of opportunity to return with a reduced offer.

The post Brexit period has granted agents a justifiable reason to advise their clients on where the true price should be if they are seriously minded to sell. They will be using this opportunity to have a realistic conversation with their clients owning houses in ‘grade A’ locations like Chelsea and Notting Hill. Right now they will be recommending that the asking price is too expensive and needs adjusting to reflect the price sensitivity in the current PCL market. Those that listen are far more likely to sell than those who do not.

Of course, aside from buyers and agents, the people determining property values in today’s market are the valuers, who remain overly cautious, creating a chicken and the egg situation.”

by Simon Barnes

Are London Mansion Flats a Good Investment?

You will find mansion flats (flats in mansion blocks) in various London areas. The first were built in Kensington in the late 1870s followed by others located in what are now prime London areas; including Mayfair, St John’s Wood and Regent’s Park. Originally build as cheap accommodation for the burgeoning middle classes, many flats fell into disrepair in the 20th century only to re-emerge in the latter part of the century as property prices in London began to take off and mansion blocks were systematically renovated.

Historically purpose-built as flats, rather than the more typical conversions of larger buildings, mansion flats have large regular-shaped rooms, high ceilings, proper walls (not plasterboard) and their stone walls and concrete floors make them much quieter than many of their more modern alternatives.

However, there is a down side as many mansion blocks were not renovated with lifts – an absolute requirement for many of today’s buyers. Also, many older blocks were badly managed which means that current owners suffer high maintenance charges.

Being located in substantial buildings with proper walls and stone floors can also mean that wi-fi is difficult and some flats ‘enjoy’ a low or non existent mobile phone network reception. Many are managed by residents who all have a share of the freehold. Finally, many mansion blocks have been badly converted.

My top 5 tips for buying a mansion flat

For those looking at mansion flats as an investment I would recommend always looking at flats which

have been well maintained and are serviced by a reputable management company
are located in good areas
have modern and reliable lifts
are complete (i.e. not sub-divided) and retain some period features
have good access to wi-fi and telephone signals

by Simon Barnes

Prime Property: When a crash is not a crash

A recent article on about London property declared that at the high end of the prime property market transactions had ‘collapsed’ and that an analysis and figures taken from Land Registry numbers by London Central Portfolio showed a ‘27.6% fall in transactions over the past year’. The problem with this analysis is that, at the very top end of the market around one in five deals are done though companies and most of these do not appear on Land Registry statistics. It is even possible that the proportion of these transactions through companies has increased over the last 12 months, but that information could only come from agents and not from Land Registry data.

My own experience is that the market continues to remain as it has been for quite a few years with serious overseas buyers intent on investing in Prime Central London and domestic buyers motivated to acquire good property that ticks all the boxes; it is certainly not ‘dead’, it has not ‘crashed’ and buyers are very much in evidence. While it may be interesting to compare what is happening in different parts of the property market, researchers really need to understand how properties are bought and sold, what appears and does not appear in Land Registry numbers. They should be mindful to always ensure that they compare like with like to avoid sending out inaccurate messages to the reader and prospective vendors and buyers.

London Property in January

London Property: H. Barnes & Co is joint selling agent with Knight Frank’s Knightsbridge office for this £22.5m penthouse in Montpelier Walk, Knightsbridge, London SW7

Americans living in London

My top 5 tips for buying a mansion flat

Contact H. Barnes & Co – Tel: 020 7499 3434