Cluttons: ‘Market isn’t crashing but sellers are becoming more realistic’

The market is a long way off crashing but sellers are becoming more realistic, a senior agent has claimed.

It comes as agents and property professionals continue to debate whether the housing market is heading for a downturn and what they should be advising clients.

James Hyman, head of residential for London agent Cluttons said there are no signs of the market returning to the drastic environment of the 1990s.

He said: “In the past, a clear sign the market had crashed was receiving keys through the office letter boxes with a note asking for an immediate valuation - we are nowhere near that.

“Whilst we are seeing signs that the tide is turning for the UK property market, we are a long way off a crash. Supply remains tight which is underpinning the market.”
 

However, Hyman said there is definitely a change of sentiment, especially among sellers, who he said are being far more realistic about pricing.

He said: “They are realising that if they want to sell their property they need to listen to their agent about pricing. 

“Looming interest rate hikes, the cost-of-living crisis and media reports of an impending crash is bringing more stock to the market and making sellers more realistic about pricing.  

“However, we are seeing a notable increase in activity as buyers capitalise on this, especially in areas such as Tower Bridge and Wapping as buyers see value in the market and are now back to the office and looking for a central London base. 

“With rents and hotel prices increasing rapidly we expect this to continue as buyers see value in owning a London pied-a-terre. 

“Furthermore, particularly in the new build market, the weak pound is helping bolster the market as foreigners look to capitalise on discounts through exchange rates."