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Pre-election period creates ‘buyer’s market’

  • 26/02/2015
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Buyers would be “foolish” not explore the current property market, with vendors more flexible to offers prior to the general election, buying agent Paul Pavlides of Prime Purchase says.

Pavlides said the volume of transactions falling as the election drew closer coupled with the market adjusting to increases in the Stamp Duty tax meant consumers could enjoy a “buyer’s market” for the first time since 2009.

He explained buyers were more likely to be able to negotiate Stamp Duty increases on properties worth £2m or more and vendors would also be more amenable to lower offers, particularly if their property was on the market before Christmas.

“One of the biggest things is the international buyers are realising the currency fluctuations means it’s a great time to jump in,” Pavlides said.

“There’s not as much competition, prices have gone up 15-20% in certain areas of London but salaries have not, so a lot of people have been restricted in what they can purchase so there’s not as much competition.

“Some people are also holding off until after the election so it just means that if you find the right home and you’re able to stretch to it some vendors are so committed to selling in this market and therefore might be a bit more receptive to offers.”

Pavlides added that taking advantage of a buyer’s market did not necessarily mean purchasing a property but just looking around.

“Everyone is unique in relation to their requirements and financial position but I think anyone would be foolish not to go out and look and find that property. If you’ve done that research you’ll find that some vendors are a bit more amenable than others just by talking to the agents or by seeing reductions in the prices.”

Richard Sexton, business development director of e.surv, said there was a window of opportunity but explained the situation was likely to reverse once the election was over.

“I think there is the fact that emotionally people do pause for thought the closer you get to a general election and therefore if you’ve got the confidence to buy then you might be able to negotiate a better deal because, yes, buyers are in shorter supply,” he explained.

“Relatively though, London house prices are still very positive in terms of growth and the savings that you’d expect to obtain would not be hugely material.”

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