Prime London market stalls as buyers hesitate and sellers resist price cuts
Prime London’s property market is experiencing a slowdown driven by hesitant buyers and sellers maintaining unrealistic price expectations, according to a buying agent operating in the capital.
Jo Eccles, Managing Director of Eccord, a prime London buying agency, reports mixed signals from estate agents, with some describing a busy autumn period whilst others report minimal activity. One agent remarked: “I have had one appointment this week and it was my Ocado delivery.”
Eccles notes that market activity is being driven by viewings rather than completed transactions. “What we can all agree on is that activity is being driven by viewings rather than transactions and while active buyers are seeing real opportunity and value for money, many are struggling to commit to a purchase,” she says.
Buyer concerns stall transactions
Buyers cite concerns about potential further economic decline and house price falls, alongside the cost of Stamp Duty, as factors delaying purchase decisions. This hesitation is leading to extended search periods, with buyers seeking properties that meet exact specifications across location, layout, condition and price.
Eccles describes the phenomenon as “buyer paralysis”, with even committed purchasers concerned that better opportunities may emerge. “Even very committed buyers are fearful that something better may be just around the corner, or they are continually searching for a ‘unicorn’ and not realising that their perfect property doesn’t quite exist,” she explains.
The trend reflects broader market uncertainty, with 41% of English homes on the market having reduced asking prices, indicating sellers are beginning to adjust expectations in some regions.
Sellers resist market valuations
On the selling side, Eccles reports that many vendors are struggling to accept current market valuations, particularly when they have invested in refurbishments on top of original purchase prices and stamp duty costs. “Many selling agents are continuing to overprice properties to win instructions, even though competitive pricing is essential to achieve a sale in this market,” she states.
The buying agent also highlights complications arising from selling agents acting as unofficial buying agents, creating what she describes as “fee wars” behind the scenes. This practice can result in buyers unknowingly working through sub-agents rather than directly with instructed selling agents, potentially disadvantaging them in negotiations.
Among active buyers, Eccles identifies needs-driven upsizers and tenants ready to purchase as the primary market participants. With increased property choice available, these buyers are conducting more thorough searches, incorporating public listings, off-market opportunities and rental properties where landlords are open to sales.
Market outlook
The current conditions in prime London contrast with faster-moving markets elsewhere in the UK, where transaction speeds have improved. The combination of cautious buyers and resistant sellers suggests the capital’s high-end market may remain subdued until either pricing adjusts further or economic certainty improves.
For independent buyers without professional representation, Eccles warns that the opacity of the current market presents particular challenges, with the complexities around shared instructions and fee splits adding layers of difficulty to the purchasing process.
