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Property sales down by 75 per cent with 50 viewings to get a deal get a sale
Sri Carmichael and Jonathan Prynn10 Oct 2008
The London property market has virtually come to a halt over the past month, threatening the jobs of thousands of estate agents.
Phones have been eerily quiet since the middle of last month when Lehman Brothers collapsed, according to agents who are struggling to convert viewings into sales.
There is a growing fear that without a pick-up soon, hundreds of high street branches will have to close.
Foxtons has already started to shed staff and cut back on advertising.
Even before the events of the past months property sales in London were down by more than half on last year. Now the fall is thought closer to 75 per cent.
Liam Bailey, head of residential sales at Knight Frank, said: “It's been very bad since April, but it did seem to be picking up slightly in September. There was a sense that people felt things had got as bad as they were going to. But since Lehman collapsed it's got worse than ever due to all the uncertainty. ”
Lindsay Cuthill, director of Savills, added: “We're still getting viewings but it's harder to turn those into sales. Some of our offices say they need 50 viewings before they get a deal.”
The stagnation comes after Halifax revealed the average price of a home has dropped 13.4 per cent over the past year.
But Marsh & Parsons managing director Peter Rollings said in London real prices were down 20 per cent. His firm last week sold a west London flat for £260,000 to a buyer who paid £360,000 for it last year.
Stephen Smith, of the south London branch of the National Association of Estate Agents, said agencies are refusing to take on homes at unrealistically high prices.
“They're telling sellers to lower their expectations or forget it,” he said.
Reader views (5)
Strange it seems that alot of people have forgotten that house prices have not really increased in London over the last few years above a normalish 5% pa.
The market will only contract so much and if interest rates come down alot more, people will look to buy property. Rents will start to rocket up now that more people wish to rent rather than buy. So investors will benefit from buy to let as their yeilds go up.
- Chaz, Perth, Australia, 13/10/2008 05:32
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How dreadful for estate agents. Should we start a collection??
- Mark T, Sydney, Aust, 13/10/2008 05:11
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The Stockmarket in companies holding housing assets is telling you how far they will fall!
- R James, Redland, 10/10/2008 13:49
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A friend was so disappointed with the service he got last time he moved he now has a new game. You browse the window of an estate agent's, pretend you are going through the door (where the expectant staff are busy picking their noses) and then walk off. It's catching on quite quickly. As he says "revenge is sweet!".
- Michael, London, 10/10/2008 13:31
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Welcome to the housing meltdown. Houses prices will return to what they were 5 years ago, if not more. The gains were too big and now; so will be the losses.
- Brandon Thomas, London UK, 10/10/2008 13:03
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