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Sales March 11, 2021

London Property Deals Taking More Time

There has been significant demand for property in the UK as a whole of late, and while this is positive news for many, it presents a challenge for many people.

There is a lot of work involved with a property deal, and a lot of professionals are involved with the process. When you have so many deals on the go, it is inevitable that a backlog arises. At a time when people are desperate for deals to be concluded as quickly as possible, the time taken to conclude deals is slowing down.

A recent study suggests property deals are taking 29% longer to conclude than they were previously.


Buyers and vendors need more time to conclude deals

The time taken to sell property is said to have increased from 96 days to 124 days. With the stamp duty holiday deadline in place, there has been a pressing need for deals to conclude as quickly as possible.

We know many people run the risk of missing out on the stamp duty holiday because of the deadline, and as of yet, this deadline hasn’t been increased. We will continue to monitor this for you, and if it changes, we will let you know.


There are fresh challenges in the London housing market

As an estate agent operating in and around Hackney, we know the challenges property buyers and vendors face in London. The time-lag the market as a whole is experiencing right now is likely to be more keenly felt in the capital.

The same study suggests the average time it takes to exchange property in the capital has increased from 97 days to 125 days.

There is also cause for concern when you consider the transactions in the most recent 30 days of being searched, as the average time taken to conclude a deal is 160 days.

Movewise said; “There’s a bottleneck in the conveyancing process as councils struggle to handle the level of property searches being requested and conveyancers drown under an increased workload.”

At Sovereign House, we are keen to help you make a move, and we will use our expertise and experience to assist you as best we can in this time.

Tom Scarborough, Movewise founder, says: “Although houses are going under offer on average five weeks after initial listing, the bottleneck in the conveyancing process is causing a headache for both sides of the transaction. Buyers are still keen to beat the stamp duty deadline and sellers need to be aware of that before accepting an offer. To avoid transactions collapsing, any offer being made now should be on the understanding that completion is likely to be after the tax holiday ends.”

Tom continued by saying; “If required, buyers and sellers should enter into any negotiation on price, before the conveyancing process commences. An honest and frank discussion upfront, could avoid a transaction failing further down the line, after money and time has been spent on searches and surveys.”

These are challenging times in the property market, but there is activity and demand for homes. At Sovereign House, we are keen to help you with whatever you need in the Hackney housing market. Why not call us on 020 8985 5800 or visit us at 213 Victoria Park Road, we look forward to assisting you with your property needs.

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