Are buying agents talking down the property market for their own gain? That is the claim of Guy Gittins, sales director of London agents Chestertons.
Writing in City AM, he questions the negative press coverage of the property market since the Brexit vote, stating: “What has been frustrating is some of the negative reporting on the residential property market outlook since the Brexit result came in, which in some cases has bordered on hysterical.
“Just a week after the vote, one newspaper carried a poorly researched piece on its front page warning of panicked sellers ‘slashing’ prices.
“On closer inspection, the properties flagged as prime examples of this discounting frenzy had in fact been reduced incrementally over timespans of a year or more, with the majority of the discounts coming before the referendum. Perhaps unsurprisingly, the so-called experts quoted in the piece were mainly buying agents, who would presumably be very happy to secure discounts for clients if spooked sellers were indeed rushing to ‘slash’ prices.”
Gittins insists in the piece that the property market is resilient and demand in London is still outstripping supply.
Buying agent Henry Pryor wasn’t too impressed with the comments.
He told EYE: “It would be hard to find any agent – selling or buying – who has a firm grip on what exactly is going on with the market since June 24.
“What I would have thought we could all agree on is that there is a lot of uncertainty and that in London at least the market was already sagging way before the referendum.
“Still, it all makes good copy I suppose.”
Pryor listed several articles in recent weeks such as research firm LonRes announcing that the number of cuts to asking prices surged by 163% in the 12 days after the referendum, and occasions where agents including Winkworth and JLL have said prices in central London had slumped.
He added: “Talking the market up is a tried and tested trick deployed by agents. Of course they want to pour oil on these troubled waters, but instead of pretending that everything in the garden is rosy, agents should be reminding clients that in uncertain times they need professional advice more than ever.
“The days when any fool could sell a house are over – the market has changed as the profits warnings to the City from listed agents confirm.
“As my late father-in-law used to say ‘better to keep your mouth shut and let people think you’re a fool than to open it and prove to them that you are’.”
Others told EYE that buying agents were simply doing their job.
Ed Mead, of Douglas & Gordon, said: “Clearly in the immediate aftermath of the vote, deals are being done where short-term uncertainty is priced in, i.e. where prices are reduced – don’t forget a lot of people had been waiting and have to get on with their lives and ongoing purchases are being negotiated with matching reductions.
“Not sure why you wouldn’t expect buying agents to take advantage and talk the market down – but the reality is that there are plenty of buyers waiting and if prices fall too much those will step in – so I see little likelihood of any more falls.”
Ken Hume, of James Alexander, said: “It is a buying agent’s job to negotiate hard on price and it should be no surprise that they are making efforts to talk down prices when employed to do so.
“When we are employed as buying agents we will move hell and high water to achieve the lowest price for our clients; after all, that is what the client is paying us for.
“Conversely, good estate agents are also very strong negotiators and can really demonstrate that they are worth their fee when defending their client’s price, even against similarly able buying agents.”
Comments (4)
WELL…
Last thing I want to do is have a chew at Mr Pryor. Not that it matters much – he can’t have a lower opinion of me and my like than he already has made clear – but I don’t want to fuel up his needing to come up with a lower form of life than “bacteria” (I seem to remember it was once “pond-life” he referred to my likes as – so I and the happy band of anonymous irrelevants of EYE have been demoted down the evolutionary scale somewhat…) – so I will respond instead to Mr Simon Bradbury – entirely based upon his own comment above.
Sir… I respect you as an extremely well-experienced and knowledgeable Estate Agent – and I can’t remember ever disagreeing with you on any subject previously – however on this matter I suggest you give your head a well-needed shake.
And that’s the polite version.
Strange but as we have all seen over the last week prices are not falling because of Brexit and everywhere I go I hear the same. Supply and demand control values. The issue is affordability and lending and has always been since man walked. People need to get off the Brexit vote bandwagon for in the main it is utter tosh, has happened and life goes on.
A ludicrous criticism of people like Henry Pryor who are simply reporting the facts as they honestly see them.
I for one think that these critics should heed the advice of Henry’s late father-in-law.
Personally I may agree or disagree with Mr.P’s views on a number of issues but I always believe that they are honestly felt and made with integrity.
The one annoying about him that I will concede is that he’s normally right!
Well Simon he had to have a fan somewhere.
My issue is statements like the one above. “Still, it all makes good copy I suppose.”.
Coming from a guy who you can rent a quote from on a daily basis and is not at all against commenting on everything and anything property related if it increases his profile. That just strikes me as a bit hypocritical.