With property supply at an all-time low, and demand at an all-time high, using a buying agency has never been more desirable. This is reflected in the latest survey by LonRes, which has revealed that more prime buyers are opting to use a buying agent to aid their search. Black Brick Founding Partner Camilla Dell has delved into the detail of the LonRes survey and its findings.
According to LonRes, demand for buying agents is rising. 54% of its respondents reported an increase in enquiries over the last 12 months, with just 12% seeing fewer prospective clients. But there was more competition, with just 10% of agents reporting fewer competing buying agents in their area.
“This is certainly something we are seeing at Black Brick,” comments Camilla.
“The last two years has seen a complete shift in the way we work and live, and as a result, there has been a sharp rise in the number of clients looking for family homes with gardens in prime London suburbs. We have had more enquiries from prospective clients than ever before. 2021 saw us secure 25 properties equating to the value of £100 million and we anticipate that 2022 will surpass last year’s success.”
What do buyers’ budgets look like?
The LonRes data showed that buyers’ budgets are the same or higher than they were pre-pandemic, with the majority staying the same (66%) or increasing (34%) this year. Demand for higher priced properties is also on the rise, with the majority of clients looking to spend more than £2 million.
“At Black Brick, we welcome clients with a budget of over £1 million, with most of our clients’ budgets ranging between £2 million and £10 million. Our clients’ average spend on properties last year was £5,060,388, a number which we’re seeing hold year-on-year.”
Just 7% of respondents claimed clients with average budgets of below £2 million and 15% reported their buyers had on average £10 million or more to purchase their next property.
Does location matter for the 2022 buyer?
With a change in buyer’s priorities, as a result of the pandemic, the London property market has shifted. LonRes’ research found buying agent enquiries are strongly led by clients hoping to move from central London to outer leafy suburbs (Richmond and St. John’s Wood for example), in search of larger family homes offering more outdoor space, and room for a home office. With the lack of supply to meet demand pushing prices upwards, and causing bidding wars, there is a lot of competition.
“The competitive nature of the property market is instilling a sense of unease in prospective buyers”, continues Camilla. “Buyers are, understandably, concerned about missing out on the perfect property or paying above market value. With so many buyers looking for the same thing, navigating the property market without a buying agent is, quite frankly, treacherous.”
Who is buying in Prime Central London today?
LonRes asked buying agents to report their most prevalent type of clientele throughout 2021. The results showed three predominant types of buyer, with overseas buyers being the most frequently reported.
“Despite notably high levels of overseas interest, we predict as travel restrictions continue to ease, the number of overseas clients will steadily increase throughout 2022. This introduces an added competition to the already turbulent market, making it more valuable than ever to use a buying agent to aid your property search.”
According to the LonRes data, owner-occupiers choosing to upsize their homes in 2021 were the second most reported group, whilst the third most reported group was buyers opting to purchase a second home.
“Both upsizing and purchasing a second home, are characteristics of buyers who have been influenced by the pandemic. Priorities are changing; homeowners who moved out of London are now moving back but keeping their property outside London too – they want the best of city and countryside living.”
Camilla concludes, “Although the ‘race for space’ has lost urgency, as an agency, we can still see the lasting effects of lockdown. Our clients are on the hunt for properties with a spare room or garden studio, for working from home and a greater desire for garden space than pre-pandemic.”
Buying a property is an exciting, yet daunting proposition. Black Brick’s sole aim is to be your ‘unfair advantage’, ensuring you the best that London property has to offer.
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