The word on the street is that interest rates are going to drop again, enticing more buyers to the market. Should you start your property sale now, or wait until later in the year? Here's what Foxtons property experts say...
Key takeaways
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- 1 Beat the crowd: Waiting for lower interest rates could put you in a crowded market.
- 2 London's resilience: The capital's unique buyer pool means demand remains strong
- 3 Current mortgage deals: Lenders are already offering attractive rates ahead of any Bank of England cuts
- 4 Autumn uncertainty: Political and economic factors may complicate selling later in the year
- 5 Expert insight: Our senior sales specialists recommend acting sooner rather than later
Why should you listen to us?
Let's address the elephant in the room – yes, we're an estate agency, and yes, we want to sell your property. But our advice comes from genuine market expertise and decades of experience in London's unique property landscape. Our senior sales specialists are seeing clear patterns that could benefit sellers who act now rather than wait.
The London property market: why timing matters
Thinking of selling your London property? You might be tempted to wait until late summer, hoping for those interest rate cuts everyone's talking about. We get it – on paper, it makes perfect sense, so you sit back and wait.
But here's the thing: so does everyone else.
The 'wait and see' trap
Let's be honest – we're all reading the same news. Interest rates might drop further later this year, but when everyone acts on the same information, things get tricky.
What happens when thousands of London sellers all list their properties in August or September? Suddenly, your lovely Victorian terrace or riverside apartment isn't the only game in town. You're competing with dozens of similar properties, all vying for the same buyers.
This rush can trigger what we call a "race to the bottom" – when sellers start dropping prices just to stand out. And trust me, that's not where you want to be, especially in sought-after London postcodes.
London's property market plays by different rules
London isn't just any property market. It's a global city with distinct advantages:
• International appeal: London buyers aren't just locals affected by UK interest rates, they're international investors looking at London as a long-term opportunity.
• Premium property resilience: Higher-end properties in London often weather market fluctuations better than average. Even with economic uncertainty, prime London locations maintain their desirability.
• Return to office life: The post-pandemic return to London offices is driving renewed interest in properties with good commuting connections. This trend is happening now, so you can get onboard.
Today's mortgage market is better than you might think
Read: Rates cut AGAIN - what buyers need to know about the evolving mortgage market
Here's something many sellers don't realise – lenders aren't waiting for the Bank of England to make moves. They're already competing for business:
• Sub-4% rates are back: Many lenders are already offering competitive rates, with some dipping below 4% for certain products.
• Low-deposit options: First-time buyers can now find more accessible mortgage products, widening your potential buyer pool.
• Innovative lending: Some lenders are even introducing creative solutions like 100% LTV mortgages (with certain conditions, of course).
The current mortgage landscape is creating opportunities for buyers right now – not just in some hypothetical future.
Autumn considerations
The autumn months bring their own considerations:
• Budget uncertainty: A new budget could introduce changes affecting the property market – and uncertainty itself can stall buyer decision-making.
• Inflation wobbles: Inflation may even cause the bank of England to revisit their plans of cutting rates which could result in fewer cuts than originally anticipated.
• Global economic factors: From international tariffs to currency fluctuations, the global economic picture is constantly shifting – potentially affecting the property market in ways we can't predict.
What should London sellers do right now?
1. Get a valuation: Understanding your property's current market position is step one – and it costs you nothing.
2. Talk to mortgage experts: Have a conversation about what buyers are currently able to access. You might be surprised at how many qualified buyers are in the market right now.
3. Consider your personal timeline: Every seller's situation is different. How does selling now versus in three months align with your plans?
4. Prepare your property: Even if you decide to wait, getting your property ready now means you can move quickly when the time is right.
The bottom line? Don't feel pressure to follow the crowd
London's property market has always rewarded those who think independently. While waiting for potentially lower interest rates seems logical, the reality is that market dynamics are more complex.
By acting now, you're positioning yourself ahead of what could be a very crowded late summer market. You're offering your property when there's less competition, to buyers who are already empowered by improving mortgage options.
Of course, if selling in late summer makes more sense for you, we'll be right there to ensure your property stands out against the competition.
Ready to explore your options? Our London property experts are ready to give you a free, no-obligation valuation and discuss your specific situation.
Source: This article reflects the expert insights of our senior sales specialists who have navigated multiple London property cycles and are closely monitoring current market conditions. If you have any questions on this article, ask a Foxtons expert.
