In the past months of 2018, the London housing market experienced a boost in luxury property sales. This is an intricate phenomenon as these luxury areas were mainly avoided by buyers due to the pricing. After years of stagnation, buyers start once again to turn their attention to these particular areas of London. In Kensington and other areas like Chelsea, the home sale prices reached a whopping £1 million. This is a telling sign that the luxury real estate market will know a forceful comeback in the following period.
The growing demand for luxury houses in and around London might be telling us plenty about the buyer behaviour previously to and following that period. Below are some simple explanations for the phenomenon.
The best performing housing options last year where luxury options
The housing market and buyer behaviour have experienced a shift over the last period. The best performing housing options seem to be the ones rated between £4 million and £5 million. The demand for similar properties in the London area is on a continuous rise.
However, the consumer that is not buying properties has an uncertain behaviour and shows higher inclinations towards renting rather than buying. Long-term rental solutions also increased in popularity in the context in which the housing prices in the area are currently still relatively high.
Also, consumers adapted to the growing prices of the housing market and started to look into housing options in the neighbouring areas of London. Even if they still hunt down luxury houses, they are more likely to find convenient prices than in downtown London.
But what influenced the market and consumer behaviour so much?
Over the past few years, the Conservative party dismissed a number of legislative measures proposed by the Labour Party, one of those targeting a “mansion tax”.
The mansion tax was supposed to be applied to those properties worth more than £2 million. This discouraged both investors and private buyers from considering such acquisitions previously to the 2015 elections. The optimism levels increased in a matter of days after the Labour Party lost the 2015 elections and so did the sales on luxury London homes for sale.
Luxury home potential buyers shortly resumed their search for similar properties once the measures proposed was dismissed. Given the fact that the housing market didn’t experience a sensitive increase in prices, the investors and private buyers seized the opportunity and started buying luxury properties. The London area is where this phenomenon is the most noticeable. Of course, only the wealthy investors and home buyers are investing in similar properties, but the favourable context makes them even more desired than in the past.
Now that we know what drives this change in consumer behaviour, let’s see how the buyer should approach the entire luxury home purchase process efficiently.
Choosing a luxury real estate broker
Choosing a real estate broker focused on the luxury market segment is not as difficult as it seems, especially if you research the process well in advance. Make sure that you find a realtor that fully understands your need for the best properties and acknowledges the importance of your time and privacy. The process of buying a luxury property itself is time and resource-consuming. The most reliable option that you have is finding a realtor that is able to secure you a great deal, preferable for off-market properties.
There are certain guidelines that might help a luxury home buyer to decide if a real estate agent is worth their time and resources. While you will find literally thousands of similar workers online, discerning between the quality of their services is mandatory. Follow the steps below for an easier and faster process.
- Check the Internet for suggestions;
- Ask for referrals from previous buyers;
- Look for those specialising in luxury transactions only;
- Interview them and select one based on all the above variables.
Generally, you should look forward to collaborating with realtors that are respected in the industry. Make sure that they have all the necessary qualities for a perfect collaboration with you, regardless of what others might think.
As for yourself, make sure to be a good client and make a list with specific demands from your high end London homes for sale. This will make both your time easier and your collaboration, more pleasant. If you purchase a luxury property in or nearby London from a distance, make sure that the realtor chosen is truly understanding your taste in housing and architecture.
Make sure that you fully understand that an agent’s job is to screen all potential buyers. You want to collaborate with an agent that fully acknowledges the importance of your privacy. Please, assure that your agent has a well-developed system for doing so.
If the circumstances allow, make sure that you select and collaborate with off-market facilitators exclusively. Your data will be well-kept and you can be certain that confidentiality is their most valued asset.
Attractive housing solutions in the London area are not only embraced by wealthy business people but also celebrities. And you know it very well that those celebrities make their transactions only if those are facilitated by a realtor with experience in that area. For the best results, follow their lead and find those realtors that are able to your most exigent demands.
Besides, when choosing similar collaborators, you will be able to sit back and relax throughout that whole process. If you remember it well, we mentioned in the beginning that purchasing a luxury property might be a lengthy and time-consuming process. Well, eliminate that part by carefully choosing your realtor.
Why? Well, because these agents have deeply-rooted connections and a wide network of collaborators that are able to find and supply them with some of the best properties of this kind out there, without plastering their client’s names and addresses around the city. Keep it private, keep it confidential.