Article written and provided by Jo Eccles, Managing Director at Eccord, for Beacon Gainer, private wealth advisory services group.
The £5m – £12m price bracket remains busiest and continues to be driven by domestic buyers. The major challenge they face though is lack of supply.
Many sellers are struggling to find onward properties so we have seen a number of them withdrawing from sales, unwilling to exchange contracts without finding and securing their next home.
Low interest rates are still compelling long term renters to enter the market. We have worked with various clients over the past 12 months who have each been renting for 5 – 10 years and have now been enticed to buy a home or London base because mortgage and lombard lending rates are so attractive.
Loan to value ratios have become higher in line with borrowing appetite and many of our clients are paying just 10% – 20% equity, with loan sizes of £5m – £10m becoming increasingly common, even when they can easily afford to pay cash.
Accessing the off market layer of properties and having the industry relationships to uncover or create purchase opportunities remains key. One of our current clients had been actively searching in the £10m price bracket for 2 years. Within two viewing tours we had shown them a number of off market houses they were not aware of, one of which we have secured for them.
