Diary of an agent: Paddy Pritchard-Gordon and James Cohen

Paddy Pritchard-Gordon (PPG) is the office head at Bishop’s Stortford, Hertfordshire, which he set up in 2015, after relocating from central London.

James Cohen (JC) is an account manager in Residential Development (New Homes) at Knight Frank and covers the London market.

The strength of the residential market since lockdown has surprised many, what have been the key drivers?

PPG – People spent a lot of time at home with their families during lockdown. They’ve since said to themselves ‘this could last six months, a year or longer’ and we want more space. That includes space to work as they may only be in the office for three days a week, as well as outdoor space. This has led to local people upsizing, as well as some that were considering downsizing deciding now is the time to do so. It has also acted as a catalyst for London-based buyers that had been mulling a move out of the capital for the last few years.

JC – The underlying dynamics remain unchanged: people are looking for places to invest in and live in. Last month was one of the busiest I can remember for new homes. People can’t see a point where there will be clear sky ahead, so they’ve resolved to get on with their lives and act.

Are people willing to travel further?

PPG – It used to be the case that people needed to be at their desk in an hour and a quarter but now they aren’t commuting everyday they are willing to push this further. Extending your search boundary by 15 minutes can mean a significant saving.

JC – In a sense, yes. Our key buyers during this period have been international, especially from China and Hong Kong, as they are comfortable buying off-plan. Local buyers will want to see a development in person, and that had been difficult with the restrictions.

The market is busy but is that pushing up prices?

PPG -We have had sealed bids for some properties and fierce competition for others. However, this hasn’t led to properties rocketing in value. If you put something on for a silly price, people simply won’t consider it. 

JC – Some buyers have expected a discount during this period. However, that isn’t the case generally as demand remains strong. It’s a nuanced market, and while there are some developers out there taking the approach of offering big discounts, many are not. 

Are people still looking to buy and sell as we head into autumn?

PPG – I pitched for an instruction yesterday at £2.5m and the prospective client said they had been thinking of waiting until next year, but with the market so active they’d decided to go for it. There’s also lots of people that are still trying to sell London homes that they put up for sale after lockdown, and these buyers will enter the market in the autumn once they do.

JC – I look after developments from central London to areas such as Chiswick and Barnes, and the mood is generally positive amongst developers. Mortgage rates remain as low as they have ever been, and in regards the stamp duty holiday, everyone loves a saving.  An impact the stamp duty holiday has had though is in flipping interest amongst buyers to nearly or completed stock, as they look to complete before the 31 March 2021 deadline.

Any hurdles to overcome?

PPG - Solicitors are still swamped. I spoke to one that had been in business for 30 years that said he’d never been so busy. There also remains a bottleneck in regards mortgages and capacity amongst valuers. 

JC – The 2% foreign investor surcharge that comes into effect in the new tax year is increasingly on people’s radar. It’s not at the top of their agenda, and there’s not much we can do. Even with this, London property and its associated taxes will remain competitive and the capital remains an attractive place to invest.

What are your thoughts on the close of the year?

PPG - I think we will have a good autumn market as not everyone has found or sold their house yet. While it could be interesting next spring, we have also proved people can work at home and I therefore think the country market has a good few years ahead of it on that basis. 

JC – As long as we avoid the reintroduction of severe restrictions, we are in for a good market this autumn. There is pent-up demand, and we have picked up where we left off at the start of the year when the market was flying.