Desperate buyers pay huge premium on top properties
THE RESTRICTED supply of property in the most popular areas in London has led to buyers paying premiums of up to £100,000 above the asking price, according to a report published yesterday by estate agents Cluttons.
Domestic and foreign buyers have enthusiastically invested in London, causing the stock of houses on the market to fall by 25 per cent at the start of 2012.
As a result, prices are soaring, the estate agent said, claiming that hot spots like Chelsea and South Kensington have seen such strong demand that deals are agreed within hours of a property coming onto the market.
Furthermore, the agent reports desperate buyers paying premiums “in excess of £100,000 above the asking price”, indicating home-hunters are confident prime property prices will keep rising.
“House hunters in prime central London, starved of options, are going to great lengths to secure a property when it comes onto the market, particularly those on the most desirable roads,” commented Cluttons’ Charlie Noel Buxton yesterday.
“We believe registered demand underestimates the underlying level, with new instructions attracting a rush of applicants who aren’t registering with agents until they see a property they like.”