Market Insights February 2025

Please see below our February Market Insights outlining the themes we’re seeing in the prime central London property market this month.

I would be very happy to answer any questions or discuss any property search or property management requirements you may have.

Best wishes

Jo Eccles

Founder and Managing Director, Eccord

+44 (0) 20 7244 4482

jo.eccles@eccord.com

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Price inconsistency and lack of data is a challenge for buyers

Market activity has increased steadily since the start of the year, but buyers are extremely value driven and transactions are only being agreed when properties are realistically priced to begin with, or when the seller is open to meaningful negotiation.

Properties listed at peak prices are achieving little to no traction and sellers are eventually being forced to reduce the price or withdraw from the market, refusing to accept that London prices have largely stagnated over the past 10 years. Of those sellers who are realistic, approximately 50% are selling for a loss, once the stamp duty cost they paid is factored in.

In situations where we have made offers on over priced properties, negotiations have fizzled out quickly where the expectation gap is simply too great and buyers are quick to move on, much to the dismay of the selling agent and, in hindsight, the sellers themselves.

There is a huge spread of asking prices – over the past 12 months, we have agreed purchases ranging from paying the full asking price for best-in-class properties which have been competitively priced to sell quickly, to achieving discounts of up to 26%.

This illustrates just how difficult it is for unrepresented buyers to read the current market, and we’ve seen many come unstuck before appointing us, either offering too low and missing out, or not having the pricing data to make an offer with confidence. 

Most buyers are relying on Land Registry data for pricing information, which is typically 6 – 12 months out of date by the time it’s published. As a buying agent however, we have access to the same pricing data as mortgage valuation surveyors which is real time. If a property exchanged yesterday, it will typically be on our system the next day, enabling our clients to present substantiated offers with confidence.

School place offers drive decision-making

Offers for secondary day school places were released two weeks ago, so we are now entering the active family house market period where families are in a position to put down long term roots, knowing where their children will be at school for the next six to eight years.

Many estate agents are advising sellers to hold off putting their properties on the open market until the traditional spring selling season, and families will often wait until then before starting their search. However, for those who start looking early, many properties can be purchased off market now.

Sellers will typically already be in touch with estate agents about their planned spring sale, and landlords whose tenancies are ending this summer are also open to early sales discussions, and we are negotiating several off market purchases for clients through this route, particularly in the £3m - £10m price range.

If you're considering school choices and property options surrounding it, please read a joint blog we did with the fantastic Oppidan Education: Finding your dream house and school in the UK

Probate lawyers rely on professional home management

Our Home Management team have seen an increase in demand from probate lawyers in recent weeks, who are leaning on our services to oversee and maintain properties while the estate is finalised.

For example, we have recently been appointed to manage a London property belonging to the estate of a high-profile individual, carrying out fortnightly maintenance inspections, taking over all the property-related admin and bills, arranging specialist insurance and ensuring the property is fully secure. We also act as an independent third party overseeing expenditure and ensuring complete transparency of costs. 

Where the estate is significant and multiple properties are involved, probate can be lengthy, and we are seeing more lawyers recommending outsourced management of properties until they are redistributed or sold, to help preserve the property and condition until the estate is settled. 

Millennial millionaires buying up London

In my most recent Daily Telegraph column, I wrote about the shift in prime and super prime buyers.

Previously, the majority of these buyers had steadily accumulated wealth over a long term career. However, the average age of a buyer spending £25m or more, has fallen from 53 a decade ago to just 41 years old, and the majority of clients we’ve worked with in recent years spending £20m or more, have been in their 30s or 40s.

Most have accumulated their wealth over much shorter periods than their predecessors and my column explains how these younger buyers are shaping the market, including the pressures and challenges they face adjusting to their new-found wealth and navigating London’s complex property market for the first time.

The Telegraph reported that this has been one of my most read columns, which indicates the high level of interest in this topic. The article is behind a paywall, but if you would like any more information please don’t hesitate to get in touch.