Sellers need to adjust their expectations of value says Savills
A recent UK news release from Savills published 24th April on their website headlined ‘Prime housing markets continue to adjust to uncertain times’.
In the leading paragraph the report states: The UK’s prime regional housing markets have performed more strongly than London’s top postcodes for over two years.
Lucian Cook, Savills head of residential research, says: “Our forecasts anticipate two years of lacklustre price growth during the Brexit negotiations, particularly in the prime markets of London which are most price sensitive.
“The election is unlikely to shift that picture dramatically unless it brings the disruption of a change of government. Post election, consistency of government throughout the Brexit process has the potential to be a steadying influence on the market.
“And however highly taxed the top end of the market now is, it will need to continue to need to absorb high rates of stamp duty. For now we believe that stamp duty reform is at best a possibility rather than a probability.
“Sellers need to adjust their expectations of value to bring them into line with buyers’ expectations. Prime central London vendors appears to have understood this and price cuts have begun to bring buyers back in to the market. In the rest of prime London, the gap between buyers and sellers remains wider, contributing to a pool of overpriced stock. Further asking price cuts will be required.
“Our view is that however highly taxed the top end of the market is, and whatever the undoubted economic inefficiencies this creates, a rate cut in the short term remains only a possibility rather than a possibility. As such, buyers will need to continue to factor the charges into their purchasing decisions for the foreseeable future.”
To read this interesting UK news report from Savills in full click here.
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