Prime London sales: The Autumn market is stirring
Autumn usually marks the moment when the market wakes up after the summer lull, and this year is seemingly following that familiar pattern. More viewings are being booked, offers are starting to come through and it feels noticeably busier than the quiet summer months. That said, there’s a familiar caution in the air too. Buyers and sellers are watching Parliament closely until this most recent Budget is announced on 28 October. It’s not stamp duty in the firing line this time, that’s been ruled out, but speculation around capital gains tax and a possible toughening of last year’s mansion tax is enough to keep discretionary buyers waiting for clarity at the upper end of the market place.
The European Central Bank raised interest rates again on 10th September largely on the back of energy-driven inflation. The Bank of England makes its own call on 17th September, and it is now widely expected that the 3.75% base rate will be held. Pundits looking to the next 12 months, are split two ways, with half expecting rate rises and others anticipating rate reductions!
The good news is that US inflation held steady last month rather than climbing further and that kind of steadiness is exactly what tends to give central banks confidence to hold interest rates rather than increase them any further. Good news for anyone taking out a mortgage.
Unfortunately, none of this changes the underlying data. LonRes figures show prime London transactions were down 11.5% year on year in July, with average achieved prices 7.9% lower annually. Some of this reflects landlords decisions to sell due to the Renters’ Rights Act, which came into force in May, and is a trend that has been most visible at the lower end of the market where rental stock is concentrated.
What hasn’t changed is how price sensitive the market currently is. Over half of properties that sold this year did so only after at least one price reduction. Properties that find a buyer within three months see average discounts under 4%, ones that sit for a year or more see discounts of 19% or higher. Price your property at the correct level from day one and you’re in the group selling quickly and cleanly.
It’s not all bad news, there are still deals being done with buyers out looking for homes and vendors still needing to sell.
If you’re weighing up whether now is the right time to sell for you, it’s worth a conversation with us before you commit to anything so please get in touch.
Property of the month
An immaculate freehold mews house with garage in a gated cul-de-sac.
Tucked away in a quiet, secure enclave just off the Fulham Road this three-bedroom mews house is presented in genuinely turnkey condition. It’s rare to find a similar house with an integral garage, a full-width first floor terrace and a private south-facing garden all in one.
At a glance:
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Three double bedrooms, including a master suite with dressing area
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Integral garage plus additional visitor parking space
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South-facing garden and a 24ft private terrace
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Daytime porter
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Gated development
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1,514 sq ft
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Freehold
Minutes walk from all the bars and restaurants on Hollywood Road, with easy bus links to South Kensington and Sloane Square. This is the kind of turnkey mews house that doesn’t come to the market that often.
Please get in touch for more details.
Sale of the month
Another successful sale by Farrar
We were recently instructed, rather late in the day, on a flat in Cheyne Court, Old Chelsea, SW3. It had been on the market since mid December with a large international agency. In the first four months the agent cut the headline price by 20% after pricing it too high, then recommended another substantial reduction in July, which would have taken the total cut to over 30%.
The owners brought us in to breathe new life into the sale and create a race to the finish line after many months of wrongly priced marketing. They wanted agents who would take real ownership of the process, which is exactly the sort of challenge our experienced team enjoys.
Within weeks we found a fantastic buyer, without the flat appearing on the internet at all with Farrar. Our clients were delighted and the buyer is very happy too!
I think this highlights the importance of getting valuations from level headed, seasoned agents who are grounded in reality if you want to sell in the current market. The highest figure is often the least realistic, and it can come from an agent more interested in winning instructions than in serving the client.
Farrar has over 50 years’ experience in Chelsea and we are here to help.
Top local events for your diary
Chelsea History Festival
Back at the start of October, bringing together historians, authors and broadcasters across some of Chelsea’s most iconic venues, the Royal Hospital Chelsea, National Army Museum and Chelsea Physic Garden. Talks, walking tours, exhibitions and family events celebrating the area’s rich past.
See the full programme →
Prince Arthur Chelsea
A new Basque-inspired restaurant landing on Draycott Avenue, live-fire cooking, a fresh seafood counter and in-house caviar. Opening 6th October, this one’s worth booking early.
Find out more →
Cosy autumn strolls
As the weather turns, take a wander along the King’s Road for a proper hot chocolate at Knoops or Venchi. Or for something a little more special, head to Egerton House Hotel in Knightsbridge for afternoon tea, or a martini (some say the best in London!).
What else is on, by postcode:
SW3 — Handmade Chelsea
Chelsea Old Town Hall hosts Handmade Chelsea from 12–14 November, a designer-maker craft fair bringing together independent makers for the perfect head start on Christmas shopping.
Find out more →
SW5 — Earl’s Court International Film Festival
Independent film comes to Earl’s Court from 14–21 November, now in its twelfth year and showcasing emerging talent alongside documentary and feature screenings.
Find out more →
SW7 — Natural History Museum
Wildlife Photographer of the Year opens on 16 October, a perennial favourite for families, while Jurassic Oceans, a deep-sea fossil exhibition, runs right through to January.
Wildlife Photographer of the Year → | Jurassic Oceans →
SW11 — A busy season in Battersea
The Decorative Fair returns to Evolution London in Battersea Park, Battersea Arts Centre has an autumn theatre and magic programme running through October and November, and Battersea Park’s Bonfire Night fireworks make their annual return in November.
The Decorative Fair → | Battersea Arts Centre → | Battersea Park Fireworks →
