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UK hot, London cold

2 Oct 2020
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UK hot, London cold
UK sales rates September 2020

This week in five seconds

  • UK property sales have normalised
  • London market is really hard to sell
  • Solicitors fear second lock down
  • Cladding issues spreading

UK property sales normalised (except in London)

Property sales have normalised across the whole country with all regions and every major city (ex-London) seeing sales rates of 54-61%. This means that over half of the listings estate agents make are finding a buyer. This drops to 42% for properties over £1m (ex-London). This is a healthy sales market.

Major cities sales rates:
Leeds 67%
Sheffield 66%
Bristol 66%
Birmingham 60%
Manchester 57%
Liverpool 43%
London 22%

Recently in “Icy cold London” we highlighted how hard it is to sell in London at the moment. Average sales rate across the capital was 22% in September meaning there are 5X the volume of sellers as there are buyers 

With high numbers of listed properties in central and south west London there is fierce competition on price and it is very much a buyers market. North and East London fairing better, possibly due to more varied stock being available.

Solicitors fear second lock down

With new concerns over a possible second lockdown some solicitors are drawing down mortgage funds prior to exchange and in some cases also insisting on simultaneous exchange and completions.

Cladding issues spreading

The cladding scandal is a daily discussion at Movewise this week as we see more and more of our vendors affected. This excellent article in The Times highlighted that the impact is spreading virally in the property markets as follows:

  • 30,000 flats exposed with Grenfell style cladding, then
  • 186,000 high rise flats with similar flammable materials, next
  • 1.5m modern homes unmortgageable who cannot prove their walls are safe

This represents 6% of the UK homes market and most of the first rung of the property ladder, impacting the entire property market, a grim prospect that beckons government action.

Have a great weekend all.

The Movewise Team.

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