Award winning buying agency, Black Brick is reporting a significant rise in people buying primary homes in Central London. Figures just released, show that over a half of Black Brick’s transactions so far for 2017 were for primary homes, almost double the amount from the previous year, suggesting that more buyers are now making London their home.
In fact, 57 per cent of the total transactions for Black Brick so far, this year have been for those intending to use their residence as a primary home, compared to just 29 per cent in 2016. Whereas secondary homes are down with just 14 per cent of properties purchased so far in 2017 intended to be used as a secondary home, compared with 47 per cent in 2016. Figures also show that Black Brick investor sales are down at 25 per cent and owner occupier sales up at 75 per cent.
Camilla Dell, Managing Partner at Black Brick commented: “During 2017 we have seen a complete u turn in primary v secondary homes. This significant drop in people buying second homes is a direct result of Stamp Duty Land Tax and the additional 3 per cent in tax which people now have to spend on a second home or a buy to let. The rise in the number of our clients purchasing primary homes in Central London indicates that fewer clients are buying for investment, or for discretionary second home reasons. They are buying to live here and choosing London as their home to be close work and London’s excellent schooling options.”
These latest figures from Black Brick also show that buy to let is down with 14 per cent having purchased a property in London as a buy to let investment in 2017, a 4 per cent drop when compared with transactions in 2016. 14 per cent bought a property for education purposes or for their children, 8 per cent higher than the previous year, which saw just 6 per cent of purchases for this purpose. 14 per cent of transactions undertaken by Black Brick in Q2 and Q3 2017 were off market.
Savvy buyers are choosing to use buying agents more and more – saving them both time and money. On average, Black Brick have saved clients 6.85 per cent on their purchase in 2016, this figure has now increased this year with those who have bought in 2017 saving an average of 8.25 per cent on their purchase.
Since April, Black Brick has acquired just over £40 million of properties, with an average deal size of £4.47 million, across 12 different postcodes and saved its clients an average of 540k on asking prices. Figures show 54 per cent of clients in 2017 have been repeat clients or referred by previous happy clients. Clients have come from Middle East 20 per cent, UK 20 per cent, French 13 per cent, Nigerian 13 per cent, Indian 13 per cent, Russian 13 per cent and 7 per cent Swiss.
Camilla adds, “Whilst our transactions so far this year show a drop in the number of investment buyers, we are currently retained on investment searches totaling £70 million, which represents just under 50 per cent of our current active client mandates. With all the disincentives there are now for Buy to Let Landlords, this will inevitably end up with reduced supply in the rental sector. Investors who hang on or enter the market now may reap the rewards in a few years time when rents will inevitably rise, as demand for rental properties isn’t going to drop anytime soon, particularly in Central London”.
Camilla added: “Buyers seeking a home in London have become confused due to the uncertainty of the market – whether to buy or wait, what location is best plus all investment opportunities out there. There is also the time it takes to find a property and the negotiation when you do, to secure it. This has driven discerning buyers to us, as we are able to advise them and ensure that they make the right decision. Now is absolutely the right time to buy property in London. People are saving more and spending less and with the favourable exchange rate, this is also the ideal for international investors to save thousands on their purchase.”
Established in 2007 by property expert Camilla Dell, Black Brick is a leading, award winning independent buying agency, which specialises in sourcing residential property for both owner occupiers and investors, property management, vacant care, rental search and managed sales services.
Since its inception, the company’s unrivalled reputation and excellent service has led to the purchase of over £1 billion worth of property across the whole of London and the Home Counties.