What’s the property market like in SW11 now?

23 posts
EscapeFromtheCountry
Posts: 2
Joined: Mon Jun 18, 2018 7:19 am
Options:
Share this post on:

What’s the property market like in SW11 now?

Postby EscapeFromtheCountry » Mon Jun 18, 2018 7:28 am

We used to live in Battersea and are thinking about returning. Could anyone who is on the spot give me an insight into how the property market around SW11 6 is faring at the moment please? I cant get much of a definitive answer from estate agents!

If you’re selling is it happening or are things really slowing down? If you’re buying is there much to see and is it going fast or are there opportunities to get the price down? We dont live near enough to pop down quickly for viewings and im not convinced the property search sites give a true picture so getting a local insight would be very helpful.

We’re looking at 4 bed family homes near good state primaries.
davidgordon
Posts: 11
Joined: Fri Aug 29, 2014 9:27 am
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby davidgordon » Mon Jun 18, 2018 9:33 am

Based on local intel and experience in the market i'd say real prices are down 15-20% from peak of last few years. However, listed prices are still higher. In other words people taking offers. I'm not sure how much of that shows up in Zoopla etc. So a buyers market. Seems to be a lack of buyers for the types of property you are looking as people still nervous about longer term job prospects and security etc. Good time to buy if you are in it for the longer term.
David Gordon
DG Law
EscapeFromtheCountry
Posts: 2
Joined: Mon Jun 18, 2018 7:19 am
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby EscapeFromtheCountry » Tue Jun 19, 2018 11:04 am

Thanks David, that’s a useful insight.
Paulette
Posts: 24
Joined: Mon Apr 23, 2018 8:52 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby Paulette » Sun Jun 24, 2018 3:07 pm

Assuming we're talking houses, the market is down a good 20-25% from the April 2014 peak. Houses that sold £1.8m are now selling at £1.4 from what I know.
Then it depends on the house condition of course. Good location and good finish in which people can move in straight away will be snapped and the price will be relatively resilient, whereas houses in need of refurb or with quirks will not, unless a good discount is agreed.

The best is to google sold prices on zoopla and try to find comparables sales. Remember asking prices are not the value of a house. The only value of a house is the price someone who has the funds for it is ready to pay for it, and that data is shown on sold prices, not on ask prices.

I fully trust Rampton Baseley to give a fair and honest valuation to both buyers and sellers and I'd have a chat with them too.
Good luck!
ntyson
Posts: 11
Joined: Wed Oct 26, 2016 12:07 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby ntyson » Thu Jun 28, 2018 4:09 pm

I recommend Rampton Baseley too. They were really helpful when we were buying (July 2015- so definitely not a buyers market then)!
legs11
Posts: 114
Joined: Mon May 27, 2013 2:17 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby legs11 » Fri Jun 29, 2018 10:31 am

Lots on the market. Selling is slow.

I'm selling a 5 bed 190m from Honeywell! PM me if you want the Rightmove link
Sloaney Pony
Posts: 104
Joined: Tue Aug 08, 2017 9:37 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby Sloaney Pony » Sat Jun 30, 2018 10:20 pm

Market is dead. Very dead. Homes by necessity do change hands. But not many.

Agents are relying upon lettings for commissions (one I know has 7 lettings employees and 2 dealing with sales). I know one 'big name' on Northcote road has made no profit in the past two years and it is weakest since 2008.

what is not properly appreciated by the rightmove asking prices is:-

(1) Ruinous stamp: You pay £1.5m for the house and the stamp is c£100k or so. £100k is more than many people will seee in their lifetimes. You can't lever against that. And it is a lot to spunk to HMRC if you are only gonna be there for a few years. People cannot see through this. £100k rents you a nappy valley mansion for two years,

(2) Many people don't know whether they can be here post 29 March 2019. As our beloved Theresa says "nothing is agreed until all is agreed" and if my German passport does not allow me to work then I cannot refinance my home on reasonable terms (what bank lends to someone who could be blackballed).

(3) Financial services is under severe pressure. Most of Nappy Valley relies upon banking in some way shape and form. DO NOT DENY THAT. Overpaid people who used to make £300k p.a. bonuses for having a job as a "M&A banker" with 5 years experience. Those days are gone. Bonuses falling as competition drives banker pay to what furniture salesmen make.

(4) Financial services may not be in London. If there is no deal on banking and the EU does not allow staff based in Britain to contact European clients, I Get a one-way ticket to Frankfurt for me and my family or I make a daily trip to Job Centre Plus with the rest of Nappy Valley breadwinners. And if I am a foreign national then maybe the home office doesn't allow me housing benefit.

Conclusion is that little is changing hands just now. And if people start to leave you can guarantee prices fall.

Don't believe any bullish agents who tell you there is competition. Or who do the 'sucking through the lips' when you put in the offer. Never forget that agents WORK FOR THE VENDOR AND HAVE MINIMAL LEGAL OBLIGATIONS TO BUYERS.

Don't be afraid to come in 15-20% below ask on the first offer. Vendors have doubled their money in ten years and avoided paying rent and refinanced their egregious mortgages at 0.99% while the rest of us got priced out by QE.

Good luck fishing for a cheap property,
SouthLondonDaddy
Posts: 134
Joined: Fri Jun 30, 2017 9:04 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby SouthLondonDaddy » Wed Jul 04, 2018 10:17 am

Not too sure about SW11, but I have spent the best part of the last 10 months or so looking at properties (3 bed maisonettes or terraced houses) in Balham, Earlsfield, Wimbledon and Putney, while trying to sell a property in SE London.

It’s hard to measure scientifically, and it’s all a mix of impressions, anecdotal feedbacks, direct and indirect experience of ourselves, friends, acquaintances, etc, but, in summary:

Yes, the real estate market in the whole of London has slowed down a lot. Volumes have plummeted, i.e. fewer and fewer properties are being sold. Prices have come down but a massive crash is IMHO unlikely, at least as long as interest rates and unemployment are both low.

The new stamp duty and the new tax rules on buy to let have killed the buy to let market. These things would have probably had the same effect regardless of Brexit. BTL means mostly one and two bedroom properties, so little impact on larger properties.

Agree that asking prices have not come down and are totally unrealistic and unreliable. One needs to look at actual sold prices. I keep receiving lots and lots of rightmove price reduction notifications in my inbox. This would have been unthinkable 5 years ago.

I have seen a couple of properties on sale now for less than they were bought at 3-4 years ago. One example is this in Balham,
https://www.rightmove.co.uk/house-price ... ry=england
bought for £850k 4 years ago and last seen on sale for ca. £830k. Not sure if it was sold in the end, nor at what price (the land registry can take a few months to show a transaction).

I don’t know how reliant the Nappy Valley has been on banking. AFAIK, most bankers have frowned upon moving south of the river. Do you know Alex Cartoon, a satire on City life? In this strip, dated July 2017, the authors make fun of a banker who is going through a divorce and is forced to move to, shock and horror, Balham (!), while his wife and family stay in the family home: http://alexcartoon.com/cartoons/7041_17 ... ur_900.gif
Back office bank employees may live in the Nappy Valley (IT, accountants, etc) but very few of those people (maybe the intergalactic head of IT…) get £300k bonuses AFAIK.

The Nappy Valley is typically home to people who live there; rich plutocrats who live among New York London Dubai LA etc don’t tend to buy houses here; drug lords dictators and other dodgy characters who need to launder their hard-earned gains do not typically buy houses here to keep them empty, etc. So the price reductions in the Nappy Valley are probably lower than in areas like Chelsea or Knightsbridge; but this also means that there will be fewer sales as people only move when forced to for life changes (new job, divorces, upsizing, etc.).

So, where does this leave you? I think the key thing is when your little one will start primary. If it’s next year, I’d probably rent near a good primary, and only buy after a year or so, because there are not many properties on the market and it may easily take a very long time to find one you like, negotiate the price, etc. If it’s 2 or 3 years away you have more options.
boonkoh
Posts: 232
Joined: Wed Apr 13, 2011 8:51 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby boonkoh » Wed Jul 04, 2018 6:26 pm

Market is definitely very slow and 1-2 bedroom apartments are in the worst trouble, so if you are looking to buy one you can drive an incredible bargain if you are patient and find the right forced seller.

In terms of houses, stock is still low but better than last year, so you should have a good selection to choose from, and negotiate for. It definitely feels like pricing between the commons is around 3-5% lower now compared to the same time last year, IMO.
TFP
Posts: 49
Joined: Wed Jan 02, 2013 4:20 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby TFP » Wed Jul 04, 2018 7:22 pm

I agree with the comment that now looks like a perfect time to rent within the catchment area of a state school, if there's one that you particularly want.

House prices can be very sticky in a downwards direction, with transaction numbers likelier than price to really tank, at least in the short term, when demand falls..

But as others have said, lots of 'city' type jobs [defined very broadly, to include banks, accountancy, consultancy law firms, etc] will indeed be lost under a hard or even middling form of brexit... and these jobs [rather than e.g. the air quality] are the sole reason why e.g. a typical NV house is worth double [and the rest] of what a house of the same spec would be worth even within walking distance of the centre of any of provincial town or city.

I think it highly unlikely that prices will be noticeably higher than now in a year or two's time, & might well be lower, so why not wait and see?
 
Dub18
Posts: 1
Joined: Thu Jul 05, 2018 3:53 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby Dub18 » Thu Jul 05, 2018 4:19 pm

Has anyone had any recent experience of making a low offer for a property in the area? Any experience of "offended sellers" as estate agents would lead you to believe?

I'm currently looking to buy but my budget is about 15% below some of the houses I'm interested in and I don't know whether it's worth even making an offer on such properties or simply viewing those closer to my budget.

Thanks!
legs11
Posts: 114
Joined: Mon May 27, 2013 2:17 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby legs11 » Thu Jul 05, 2018 4:40 pm

It really depends whether it's been marketed at a realistic price or not. Your typical BTC house is now worth 1.4-1.6. The ones at the top end of this are high spec and immaculate, middle will be in very good condition but perhaps extensions etc were done a while ago so not so high spec, lower end may need redecorating.

If it's been priced realistically you'd be unlikely to negotiate more than a 3 or 4% discount, but if it's massively overpriced you might get lucky. There is quite a lot on the market so you should be able to prove they've mispriced.
SouthLondonDaddy
Posts: 134
Joined: Fri Jun 30, 2017 9:04 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby SouthLondonDaddy » Thu Jul 05, 2018 4:43 pm

I have seen newbuilds near Wimbledon dropping from £850k to £750k! Although that's a slightly different market, because a developer has different incentives to a family selling their family home.

@Dub18, I'd recommend, like others have said, looking at the sold values on rightmove or zoopla to get an idea.

Realistic sellers, looking to move elsewhere in or around the M25, will appreciate that the house they want to buy will have come down in value, and they won't necessarily be worse off.

However, there are still lots of estate agents that try to get business by pitching and promising unrealistic prices to greedy sellers. Or sellers who simply think it's their God-given right to sell at a price higher than 2-3 years ago. Good luck to those! :)

As mentioned, all these factors contribute to the plummeting volumes: many people decide to stay put and not sell unless absolutely forced to.
SouthLondonDaddy
Posts: 134
Joined: Fri Jun 30, 2017 9:04 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby SouthLondonDaddy » Thu Jul 05, 2018 5:07 pm

TFP wrote:
Wed Jul 04, 2018 7:22 pm
But as others have said, lots of 'city' type jobs [defined very broadly, to include banks, accountancy, consultancy law firms, etc] will indeed be lost under a hard or even middling form of brexit... and these jobs [rather than e.g. the air quality] are the sole reason why e.g. a typical NV house is worth double [and the rest] of what a house of the same spec would be worth even within walking distance of the centre of any of provincial town or city.
But the same can be said for many, if not most, parts of London. London as a whole is insanely priced. But, within London and its insane prices, south of the river, including Wandsworth, tends to be still cheaper than north: part of it is the better transport links and more tubes north of the Thames, but part of it is also, IMHO, a big, not entirely justified stigma that is still attached to living "south of the river" Am I the only one who has ever been met with puzzlement and horror when explaining he lives 'south'? :)
Sloaney Pony
Posts: 104
Joined: Tue Aug 08, 2017 9:37 pm
Options:
Share this post on:

Re: What’s the property market like in SW11 now?

Postby Sloaney Pony » Thu Jul 05, 2018 11:17 pm

Dub18 wrote:
Thu Jul 05, 2018 4:19 pm
Has anyone had any recent experience of making a low offer for a property in the area? Any experience of "offended sellers" as estate agents would lead you to believe?

I'm currently looking to buy but my budget is about 15% below some of the houses I'm interested in and I don't know whether it's worth even making an offer on such properties or simply viewing those closer to my budget.

Thanks!
I recently put in some offers on three that were 15% below ask.

(1) went for 13% below ask as per Rightmove
(2) my offer got rejected. It came off, came on again (x2) and is still on the market after 1 year, but has been price dropped 2x to where my offer was
(3) I got for 15% below ask on first offer and then negotiated it down another 3% post survey (nothing was wrong ... I just said the survey showed structural problems with the large extension and threatened to walk away)

Give it a go. Just when you deal with the agents understand the tricks (google them). In particular:-
(1) explain your offer in terms such as "maximum we can afford, good proceedable offer, house needs a lot of work" before giving a price (shows you ain't a pansy)
(2) say it is "best and final" and valid for that day as you have another 5 bids with other agents to get through if not taken
(3) don't say anything ... pauses are used by them to get you to speak ... play the trick back to them
(4) don't react when they try to "shake you down" and get aggressive (maybe the"managing partner" calls you back)
(5) do t put In Another offer or say "I might come back" when. Your offer is rejected as they come crawling back 2 days later

If a vendor is serious, the house will be yours 15% lower ... trust me ... if you have a shortlist of 3 then one is yours ... trust me .... I am god on this one.

If you follow my advice, you are there already ...

Good luck with your pot shots 8-)