The top end of the property market is showing signs of recovery, prompting agents to forecast a top-down recovery. Savill?s predict prices of well maintained houses in good locations will rise by 10% by the end of the year.
?The buyers? market is becoming a sellers? market,? says Crispin Holborow, Head of Country Houses at Savills. Mr Holborow puts this down to ?feelings of increased confidence amongst buyers? which has until now failed to be reflected among sellers.
?Why sell a Rembrandt when the market is down?? asks Holborow, referring to the owners of top-end houses who have been reluctant to enter the property market. But as buyers flood back to the market sellers are starting to follow suit. Consequently the supply of houses over £3 million is up by 15% and houses over £4 million 8%. The recent sale by Savills of Chilworth Manor in Surrey and Maperton in Dorset (on the market for £3.5 million) for good prices, is evidence that the country house market is picking up.
However, the improvements are yet to be seen further down the market. Supply of property in the £2million to £3million bracket is still down by 30%. But with the increased demand, buyers are being forced to compromise on price, location or condition of properties if they want to guarantee a move by next summer: ?This, in turn, will bring more sellers to the market?, states Holborow.
It is unlikely that increased supply of properties will be seen until after Christmas, with the majority of sellers deciding to hold-off until the New Year; ?I think we?re going to see it next year, not this year,? Holborow explains.