Buyer paralysis and unrealistic sellers are holding up prime London

The housing market is being held up by hesitant buyers and unrealistic sellers, a buying agent claims.

Jo Eccles (pictured), Managing Director of prime London buying agency Eccord, says some estate agents in prime London are reporting a busy start to the autumn while others are less optimistic.

One agent told her, ‘I have had one appointment this week and it was my Ocado delivery’.

She says: “What we can all agree on is that activity is being driven by viewings rather than transactions and while active buyers are seeing real opportunity and value for money, many are struggling to commit to a purchase.

“Their main concerns are further falls in the economy and house prices, alongside the cost of Stamp Duty which is putting buyers under significant pressure to make the right long-term choice.

Many selling agents are continuing to overprice properties to win instructions, even though competitive pricing is essential to achieve a sale in this market.”

“This buyer paralysis means many decisions remain on hold this autumn. Even very committed buyers are fearful that something better may be just around the corner, or they are continually searching for a ‘unicorn’ and not realising that their perfect property doesn’t quite exist.”

Among the buyers who are active, Eccles says many are needs-driven upsizers or tenants who are now ready to purchase.

She adds: “With so much choice available, they are being much more exacting in their requirements with a property needing to tick every single box in terms of location, layout, condition and price.

“Searches are therefore taking significantly longer as we condense extensive public listings, off market opportunities and rental properties where the landlord is open to a sale, into efficient and focused viewing tours.”

Realistic valuations

Meanwhile, being a seller in London at the moment isn’t for the faint-hearted, adds Eccles.

She says: “Many sellers are still struggling to accept realistic valuations, particularly when they have invested refurbishment costs on top of their original purchase price and stamp duty. Many selling agents are continuing to overprice properties to win instructions, even though competitive pricing is essential to achieve a sale in this market.

“Another avenue being pursued by selling agents to increase fee generation is offering to act as an unofficial buying agent for buyers, to search the market and show other selling agents’ properties with ‘no fees payable’. We’re seeing more buyers falling into this trap, viewing homes through a helpful selling agent, only to realise that agent isn’t officially instructed.

“Without knowing it, they are becoming embroiled in a fee war behind the scenes. When they want to make an offer, their line of communication is through the ‘sub agent’ who is showing them the house – rather than directly with the seller’s agent. And the actual instructed selling agent is unlikely to prioritise them as buyers, as they are reluctant to share their fee.

“In a tough market, there is a lot more choice of property available – which is good news for buyers – but the complexities and politics around shared instructions and fee splits inevitably increase. For independent buyers particularly, the opacity of the market is really challenging.”