The property market is currently showing some signs of uncertainty particularly as we lead up to, and await, the outcome of the European referendum in June, the outcome of which is being hotly debated at the moment across the media and social networks.
Markets of all types dislike uncertainty and a certain amount of “sitting on hands” is currently being shown.
Basic economic factors such as greater demand than supply and low interest rates are however conducive to a good market for sellers and landlords but, with prices having peaked and a growing lack of urgency in the market, it is those who are prepared to be competitive and sensible with their pricing that are scooping up the quality buyers and tenants who are still making purchase and rental decisions, particularly with an eye towards securing accommodation ahead of the September school catchment intakes.
Mortgage lenders have recently loosened their lending requirements and various forms of 100% loans have become available, a sure sign that volumes of transactions have eased. As mentioned, there is no signalling of interest rates rising in the foreseeable future. In fact, there is as much talk of rates possibly falling as rising.
Overall we are in a period of adjustment as prices in the market could not continue to grow at the rates seen in the last two years. Prime property in sought after locations is still in high demand and there is increased interest from first time buyers – now able to compete more readily with buy to let investors who face higher levels of stamp duty on their portfolio purchases.
A realistic valuation and great marketing are key factors in sales and lettings success and our concentration on understanding our customer’s needs and working with them to achieve their goals is giving us the edge over many competitors who still think that simply putting a property on the internet will achieve a result for their client.
The lettings market, whilst buoyant in terms of activity, is also going through a slight period of adjustment. There is an increase in supply (in part following the rush by investors to secure investment purchases before the April 1st stamp duty change) and growing signs that affordability is becoming more of an issue for many prospective tenants. This is resulting in a number of situations where there is a gap between an offer being made and what a landlord is asking. Achieving the right balance here is crucial as, from a landlord’s perspective, whilst accepting say £50 a month less for a property may initially be disappointing, it represents far less than losing say two weeks rent trying to secure a higher offer. Every situation needs looking at on its merits but it is often a case of “a bird in the hand definitely being worth two in the bush”
If you are thinking of selling or letting, contact us for a fast and honest appraisal of your property.
Geoff Tomlinson
Partner