Date Published 11 July 2012
Agents have come under fire for over-valuing properties in order to gain instructions.
The criticism comes from The Buying Solution, the property-finding arm of Knight Frank, which also says that the Stamp Duty hikes on £2m-plus properties are having a profound effect on the market.
Nick Mead, an associate of The Buying Solution in the Home Counties, said: `My sense is that there is only a very small pool of buyers in the prime £2m-£4m price range as a result of changes to Stamp Duty, which are either pushing people below the £2m price range or out of the market altogether.
`There is more stock in the market, although prices are still inflated, mainly as a result of agents vying for instructions.`
Philip Selway (pictured), managing partner of The Buying Solution, said: `It is clear that international and UK buyers are looking carefully at their position following the recent Stamp Duty announcements and perhaps drawing breath.
`This, together with funding issues (lending is scarce and the time taken to arrange finance is, in some cases, prohibitive), means that there may just be a degree of caution entering the market.`