Diary of an agent: Lili Zhang and George Clarendon

Lili Zhang (LZ) joined Knight Frank as head of the London China desk last September. George Clarendon (GC) is office head at Knight Frank’s Winchester office in his home county of Hampshire.

With a surge in offers accepted in recent weeks across the UK and easing downwards pressure on prices, the agents discuss domestic and international prospects for the rest of 2020.

How did buyers and sellers react to the lockdown?

LZ – At the beginning of lockdown many investors assumed the price would drop and we were asked about “any good deals with a 10% to 20% discount” but that wasn’t the reality of the situation.

GC – As it became evident that we were heading into lockdown, everyone became cautious, adopting a wait and see approach. While there were deals done, buyers and sellers generally adopted the stance of “If you wait for me, I’ll wait for you”.

Did agreed deals hold together?

LZ – We had a few people pull out of deals, but most held together. We have just completed on a £6.9m sale in central London that will serve as a second home for a global investor, so I’m delighted about that.

GC – While some buyers tried to renegotiate agreed prices with limited success, no deals fell through. There were one or two chains that collapsed and had to be put back together, but we got there.

What is happening to prices?

LZ – Within the Chinese culture there are four core values: food, education, family and property. The property market is maturing in China, so an increasing amount of people are investing overseas. An overseas investment provides security, something tangible. So, while there has been downward pressure on prices in the past few months, I believe it will be temporary.

GC – It’s currently a two-tier market. There are properties listed during lockdown that received a lot of web traffic and subsequent interest. However, for properties that have been overlooked we will revisit pricing. The new stock we are bringing to market has been well received. Generally, prices are holding firm bolstered by a shortage of stock.

What are your thoughts on the next few months in the market?

LZ - Demand is there, especially if the schools return in September. However, it is getting harder to close the deals as people can’t visit the properties and are reluctant to pay full price for something they can’t view. However, while investors that have investments can afford to be cautious, many new investors would still rather put their money into property than the bank.

GC – It’s going to be very busy through to the autumn. If you come to market and the price is right, there is pent-up demand and you’ll do well. We have buyers bidding against each other and there was even an attempted gazumping.

Are there any steps that the government could take to support the housing market?

LZ - The new 2% SDLT surcharge for foreign investors that comes into effect from April 2021 is the big one for us. I expect to see a spike in completions in the resale market ahead of this.

GC – A stamp duty holiday for the next six to 12 months would encourage activity.

What will be your lasting memories of lockdown?

GC – An extraordinary time that allowed us all to pause and spend time with family. It’s also been a real pleasure this year to be present to watch the countryside emerge from the winter months and burst into life.

LZ – We are a team of six, with one member based in China and another on furlough. As we have friends but no family here in the UK, we’ve become an extended family. I have built a greater bond with them as we’ve talked more often, and I’ve paid more attention to how they feel to make sure they are okay.