Connect with us

Hi, what are you looking for?

Editor’s Pick

Tenth of UK homes are sold in secret

Secret property sales used to be confined to super-rich homeowners in central London who did not want their house viewings or financial information made public.

Now the practice of selling houses off-market — not listing them on a property portal or estate agent’s website — has gone mainstream, with one in ten houses in Britain being sold discreetly this year, according to research by the estate agent Hamptons.

In the five years before the pandemic the average home sold off-market achieved £1.2 million. However, the growth in off-market transactions has increasingly been driven by lower-priced properties. This year the average discreetly marketed home changed hands for £858,000, according to the research.

The location of off-market sales is changing too. In the past, selling a house on the quiet was the norm in affluent central London districts such as Chelsea, Mayfair and Notting Hill. However, during the first five months of this year 24 per cent of homes in prime country markets changed hands without being openly marketed, compared with 23 per cent in London, and 59 per cent of off-market sales are now outside the capital.

Discreet sales were previously driven by the privacy concerns of the owners, but a lack of stock is now fuelling the trend. Off-market sellers have been achieving record prices because buyers are prepared to pay a premium to seal a deal before a home is advertised more widely, to avoid a bidding war.

The average off-market home sold this year achieved 99.5 per cent of its asking price, compared with 99.1 per cent for those on the open market.

Selling a house off-market also achieves a faster transaction: the average home sold in this way took about 42 days to find a buyer, compared with 65 days for a similar prime home sold in a conventional manner.

Off-market sales are fuelled by a lack of supply to the market, but they also worsen the problem. With more off-market properties securing a sale quickly, fewer homes are being advertised openly at a later point. Twenty-six per cent of homes marketed discreetly subsequently came on to the open market this year, down from 38 per cent in 2019.

“Selling off-market has become an increasingly established sales strategy over the last five years,” Aneisha Beveridge, head of research at Hamptons, said.

However, for those who do not have the contacts to secure an invisible property, there is hope, as Beveridge believes that off-market sales may be reaching a peak.

“With the number of homes on the market forecast to rise later in the year, buyers are likely to be more cautious about paying a premium in the face of an increasing amount of choice. If this happens, off-market sales may retreat back into their prime heartlands,” she said.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PAGCOR Chairman and CEO Andrea Domingo (right) and La Paz Mayor Venustiano Jordan unveil the marker of the newly built Multi-Purpose Evacuation Center. Being...

News

As President Rodrigo R. Duterte’s term ends today, we show how select economic, financial, and development indicators have changed throughout the years from his...

News

THE peso sank to the P55-a-dollar level on Wednesday — its weakest in more than 16 years — amid fears of a recession in...

News

(MAY 13, 2020) Houses are dwarfed by towering buildings of the Makati City skyline on a quiet Wednesday midnight as they government through the...

News

THE Philippine Ports Authority (PPA) has awarded more port projects, including the construction of a cruise ship port in Coron, Palawan province southwest of...

News

MORE Filipinos opened their own bank accounts at the end of last year, as many of them were forced to pay for services online...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.