A London estate agent has started an innovative scheme whereby homeowners will be paid a cash sum if they allow their property to be valued. They will also receive a further cash sum if they decide to put their property on the market for rent or for sale. The initial £50 payment will be complement by a £250 payment if their property is listed for sale/rent and it has certainly caught the headlines in London.
This may seem a little “over-the-top” but estate agents in the UK, and especially London, have in the past offered various inducements such as food hampers, etc.
Demand for property
We can only assume that demand for property in the Brixton area, which is the abode of this estate agent, is relatively high. This comes at a time when the London property market is again under great focus with many suggesting the market has peaked and will suffer in the short term during the Brexit negotiations. This move to offer cash, with no strings attached, would suggest that demand for rental and investment property in and around the London area is still relatively strong.
When you bear in mind the PR this move has given a relatively obscure estate agent in Brixton many are suspicious that this is nothing but a marketing gimmick. The idea that the company would pay out cash to let them look around your property and further cash if you do decide to sell or rent does seem a little far-fetched for many people. However, if you put yourself in the situation of the estate agent just one sale in 10 payments would probably give you your money back and more.
While the Internet is obviously the main medium of communication in the modern world, cold hard cash is still popular in the hands of the general public. By the end of the day, if you are looking to sell or rent your property in the Brixton area it would seem likely that your first port of call would be the estate agent offering cash up front. Is this a clever marketing ploy?
There have been many stories in light of the Brexit vote suggesting that financial companies in the London area will move their operations to mainland Europe to remain part of the single market. As we have mentioned on numerous occasions, London has been one of the largest financial centres in the world for many years and this is unlikely to change. Stories of London’s demise are regurgitated on a regular basis but so far if anything the financial sector in and around London appears stronger than ever.
Those operating in the financial sector are a vital element of the London property market and indeed a lack of supply, as indicated by this estate agent’s offer, would suggest that demand is still there. This in turn would appear to pour cold water on any concerns that those operating in the London financial markets will move lock stock and barrel to mainland Europe.