A leading buying agent has claimed that, with the mortgage market still in turmoil after the disastrous mini-budget (and its near total reversal), there is an opportunity for mortgage-free buyers or those using a personal loan to 'negotiate hard and snap up a bargain.’
Nina Harrison, London Specialist at Haringtons, said there has been a shift from the firm's buyers. "Cash is King, and they want to invest it in bricks and mortar – not just in London but across the UK," she claimed. “There are a lot of people who are sitting on cash as their expenditure for the last few years has been low, in light of current circumstances, they are seizing the opportunity of changing stamp duty and a difficult mortgage market to secure investments for the short and long term."
Harrison also said about a third of Haringtons' buyers have access to cash either through savings or personal loans from family members or friends, a very different landscape to the last five years where borrowing has been cheap. In addition, she said that "These are a combination of downsizers, upsizers and first-time buyers. We are seeing a number of British-born return from time abroad and using the weaker pound to secure their new home.”
Furthermore, Harrison stated that people should not be fooled. “If you are a seller now is a good time to move if you’re not just looking for the highest bidder. These buyers are serious and reliable, which means there is little turbulence in getting the sale across the line, and the rigmarole of buying a home is lessened because they are not reliant on banks for the green light… Warning, these buyers will drive a hard bargain, because they have the ace card. Like cash buyers, sellers who’re ready to move quickly will also have an edge on their next purchase, which is especially an opportunity for downsizers who are largely mortgage, or nearly mortgage-free."
Finally, with a new Prime Minister at the helm, the market is stabilising. Harrison warned that this is an opportunity that won’t last long: "If you’ve not got time, of course, instruct a buying agent – we’re here to vet properties and opportunities on your behalf with a black book of contacts of lawyers, conveyancers, and surveyors to get things moving quicker.”