View more on these topics

Cluttons warns agents against overpricing

The tentative recovery of London’s fragile property market is in danger of being wiped out if agents give in to the temptation to overprice properties in order to win much-needed instructions, warns Cluttons.

It says demand from buyers is now starting to exceed the supply of homes, which suggests the market is beginning to stabilise.

Consequently, there is a strong temptation for agents to overvalue homes to ensure they secure instructions over their competitors, when there is little chance the property will actually sell at that price.

Although the market has rallied to some extent, it is still undergoing a price correction and will continue to do so for some months to come says the estate agency.

James Hyman, partner for residential sales at Cluttons, says: “The market remains extremely fragile and vendors need to be realistic about the true value of their property.

“Agents who overvalue instil false confidence in the minds of sellers who believe they can hold out for higher prices, driving a further drop in transaction levels.

“A sustained recovery can only be driven by a continued steady rise in demand for homes, not inflated prices.”


HML to manage Scarborough Mortgage Services

Scarborough Mortgage Services is to be managed by Homeloan Management following the merger of the Scarborough and Skipton building societies this week.Clients of Scarborough Mortgage Services will continue to be serviced by existing Scarborough staff, with assets to be migrated to the HML platform at a later date.Brian Brodie, managing director of HML, says: This […]


News and expert analysis straight to your inbox

Sign up