Bidding Wars Break Out on London Properties for Sale - Gazumping Returns

The short supply of £1 million to £5 million homes for sale in London has started bidding wars and property buying agents have seen the return of gazumping.

People who are ready to buy a luxury home in London are finding the lack of properties for sale very frustrating. Reports show that the number of properties for sale has dropped by over 21 per cent since February 2009. Asking prices stabilised in April but have been on the rise because the number of properties for sale has declined.

In July, the Land Registry office reported the first increase in “sold” prices in over 12 months. Whilst this is very good news for people who want to sell their home, property buying agents are currently finding it difficult to locate suitable properties for their clients.

Tracy Kellett of BDI Homefinders UK said, "We’re finding it very hard to locate enough luxury properties for sale. In central London there are only about 40 properties a day coming onto the market, and this is causing bidding wars.

“My life would be much easier if there were more luxury properties for sale in London and the Home Counties. For example, I’ve got £5 million to spend on a home in Notting Hill but as yet, I’ve not found anything that’s suitable. ”

“12 months ago we negotiated some excellent prices for our clients by playing hard to get,” says Tracy. "I personally haven’t experienced any gazumping yet, but other agents have as property sellers are messing buyers around, and we’ve seen multiple bids on several London homes recently.

“On most £1 to £5 million properties for sale in London there will be three or four people trying to buy it. For the first time in over a year we’re telling our clients to view a property as soon as we give them the details, otherwise someone else will buy it. ”

Tracy also said that this is not the time to try and get a bargain. “We’re telling our clients that this is a time to get reasonable pricing, but don’t expect any big discounts; you just won’t get them. ”

BDI Homefinders UK provides property search and relocation services for London, the Home Counties and the South East of England. For more information please visit http://www.bdihomefinders.co.uk/

Contact Information

Tracy Kellett

Managing Director

BDI Homefinders UK

Contact via E-mail