Gazumping appears to be Forcing up House Prices

I didn’t think I would be writing that headline until at least the end of 2009, maybe even a year after that. However the Halifax states that house prices have increased 1.9% in January 2009 and that some real estate agencies have reported gazumping.

Last minute bidding wars have broken out as house prices rose for the first time in 11 months. Charles Peerless, manager of Winkworths West End and City branches stated ” We’ve had gazumping on two lower priced properties – around the £360,000 mark – in January”

While Ed Mead, the director of the London estate agents Douglas & Gordon said their Wandsworth branch had seen one buyer attempt to gazump a rival by £50,000. The bidding upped the price from £800,000 to £900,000″

We have phoned agents in Wandsworth and a large agency said the “tipping point was Christmas”. We asked for any one bedroom flats with a garden from four agencies and have had a resounding “sorry, there is no stock available”. A rare commodity at the best of times, it’s still hard to find.

One property was offered, a nice 1 bedroom at the top of a mansion block in SW4 with communal garden for £225,00 but that still equates to £500 per sq ft, hardly a bargain when at the top of the market this would have been closer to £575 per sq ft.

However, it seems in London at least the wall of cash is still out there for some. It seems like a combination of private and commercial investors and a of course buyers who see this as a great opportunity to get on the ladder or move up it.

Have the low prices ceased already in your area?