What's Happening to the London Property Market - View from Notting Hill and Kensington

Mark Somerville, manager of Chard's Notting Hill and Kensington Estate Agents on Notting Hill Gate, is finding that the lending market is indeed tighter but this is only an issue for those with less than 20% deposits. "I've just been with a major buy to let investor who has funding for further acquisitions secured against his existing portfolio at the same rate as he agreed 12 months ago".

We've still got applicants holding back from offering or exchanging as they are waiting to hear whether the government's teaser on stamp duty is likely to bear fruit - looking increasingly unlikely in our view for properties over £250,000/£500.000 that are the norm at the very cheapest end of the property sales market in Kensington and Chelsea.

Asking prices are lower than twelve months ago as vendors are more attuned to the reality of the market and estate agents are increasingly realistic and frank with their clients. It was very common among some agents to overvalue by a factor of 10-15% a year ago in order to secure scarce instructions (for example quoting up to £1500 psf for property worth at best £1200 psf) and then simply sit back and wait for the market to catch up. We've always tried to tell it as it is to our clients and in this market realism is essential in order to secure buyers.