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London market 'booming' for competitively-priced homes

The London property market is still extremely competitive for homes that are sensibly priced, an industry expert has claimed.

Nigel Ellis, director at Prickett & Ellis, said when properties are being put on the market at around their perceived value in the capital, many expressions of interest are continuing to flood in. This means property owners can see offers within just a few days.

He commented: "Everyone is saying that if it is overpriced then it doesn't sell, but if you are at the right price then it will sell tomorrow.

"It is still a booming market if you have got things at the right price. We agents, I think, are bringing everything to a standstill by asking for too much money."

Indeed, Mr Ellis noted that when homes are being put on the market for significantly inflated valuations they can simply sit there for months on end with little interest.

He gave the example of a property that was recently listed at a value of £2.5 million. However, upon closer examinations its true market value was closer to the £1.5 million mark, highlighting the fact that many property owners are simply chancing their arm to see how good a price they can get.

What is clear though is the fact that volumes of transactions are not as high as they once were and while agents may be placing more properties on the market at higher values in order to boost their commission, the number of completions that are actually taking place is down in comparison to this time last year.

Earlier this month, The Buying Solution reported the greatest level of activity in the London property market remains in the high-value - £1 million-plus - sector.

However, managing partner and head of the London area at the firm Philip Selway noted there is a considerable fall-off in interest once properties breach the £2 million barrier, with buyers less keen to spend on these ultra-expensive homes in the current financial climate. 

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