Competition set to increase in prime property market

Competition set to increase in prime property market




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The prime property market is expected to experience a pick-up in activity in the New Year as a surge of homes come onto the market, according to Primelocation.com.  

In December the prime property portal identified over 10,000 sellers that hadn’t yet appointed an agent to market their homes, with almost a quarter of those based in the South East. This indicates that top end homeowners in this region are set to lead a bounce in activity in the spring as they put their homes on the market.

 

Following a prolonged period of limited prime stock availability, the portal said that the increase in quality supply will galvanise buyers to enter the market as they compete to purchase the best properties that fit their criteria.

 

It is also thought that some buyers are likely to be prepared to offer a premium to secure their ideal home, buoying prices and pushing transaction levels up. Due to the shortage of property, some agents have reported the return of the sealed bid in 2009 and this could increase into 2010.

 

Prime homeowners in southern parts of the UK will benefit the most from this new market revitalisation. After the South East, the second highest level of prime market activity is expected in inner London, which accounts for over 14% of those looking to sell but yet to appoint an agent. Homeowners in the South West are also demonstrating a high propensity to sell and make up 11% of those looking to move.

 

The North of the UK and Scotland will see lower levels of activity, with only a combined 15% of people planning to move being based in the regions.

 

Andrew Smith, Head of Research for Primelocation.com, commented: “This barometer of the level and location of prime market activity for coming months indicates that we are likely to experience a relatively busy spring, fuelled by more positive consumer confidence.

 

“This is particularly true of London and the South East, where top end homeowners, who may be anticipating a bonus in the New Year, are now ready to put their homes on the market following a period of more constrained supply and demand.”

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