Pimlico update

I very much hope this finds you well and enjoying the Summer or just enjoying life generally.

So what has been going on in the market these past few months?

Well in short it has been busy busy busy. This will no doubt come as a surprise as half if not three quarters of the people I speak with think the market is limping along. Well it isn’t and we are fully expecting this to continue throughout the summer months, the Autumn and well into 2025. 

As always it is easiest to back up the bold statements with some facts and figures.

1) We have seen an increase of 100% on agreed deals from Q1 to Q2.
2) We have on average achieved 97.2% of guide price 
3) 22% of the sales we have agreed have had multiple parties offering with competing bids.
4) 40% of our sales are under offer to cash purchasers (Cash purchase = No chain and no mortgage). 
5) In the last three months we have agreed c. 20% more sales than the same time period last year.

So what is driving this activity? It’s a combination of various things. The stabilisation of borrowing rates is of course a factor. The strength of the rental market is another, with first time buyers prefering to contribute to their own mortgage than a landlord’s. It was also pleasing to see so many property owners taking up the advice and getting their property on the market as more property attracts more buyers and despite what many think it does not bring down prices. 

One thing you may wish to bear in mind when considering a sale is the very real possibility that Capital Gains Tax will increase. Our new government may have said before the election they would not be raising CGT however they have now not ruled it out. The current rate of CGT is 24%, (having been lowered by the previous government), however there are mutterings suggesting this will increase to 40% or possibly 45%. This will have a significant impact on actual take-home profit as mortgage settling is not taken into account, just the difference between purchase price and sales price as well as any attributable costs and Principal Primary Residents Relief where applicable. * Please seek independent and professional tax advice. 

With regards to Lettings, this is very much the same comment as before and although the ever increasing prices are one of the fuelling factors of the sales market, for those who are not coming off fixed rate mortgages; the market is still delivering fantastic prices and can provide a superb plan B depending on the sales motivation. Landlords continue to benefit from a huge reduction in stock levels given the exit of many ‘accidental’ landlords and so there is plenty of opportunity to make hay, especially for those who have an HMO licence in place and can house 3 sharers. 

So, if you are thinking of moving, be it locally or further afield, disposing of an investment or simply would like a marker in the sand then please do get in touch. We would be delighted to chat you through the local market be it from a sales or rental perspective and see what we can do to help.