As the summer holiday period fades away and the kids go back to school, this autumn looks set to be an interesting period for the property market.
Undoubtedly there will be more activity than over the summer months: recent fears of an imminent interest rate rise have subsided and the general economic picture is improving.
However, the lead in to next year’s General Election is likely to become increasing dominant in the media and, should the Scots vote for independence, the cat will definitely be amongst the political pigeons. The market will, in my opinion, remain strong.
At the most basic economic level, the demand for property continues to outstrip supply and this will more than counter any signs of a reaction to overheating and excessive price increases. My view is that prices increases have already started to slow down or stop increasing but there is no sign of prices being achieved falling and nor do I expect there to be.
The numbers of properties coming to the market for sale are likely to increase and, with demand strong but not at the levels seen earlier in the year, sales levels are likely to remain steady but with buyers being able to select from greater choice. This is likely to help steady the market overall and provide a period of “breathing space” and “steady as she goes.”
The Government’s Help to Buy scheme has undoubtedly helped generate more sales over the last twelve months by both direct assistance and by boosting the confidence of buyers, particularly those looking to take their first steps on the property ladder. April’s mortgage market review (MMR) has slowed the process of obtaining a mortgage with a more vigilant approach from lenders to ascertaining a borrower’s ability to repay but this is slowly becoming the “norm” and factored into transaction times which have lengthened a little during the year.
The lettings market has, in 2014, already seen steadier activity than a year or two earlier with rents levelling out and many uncommitted landlords leaving the market by taking advantage of an improved sales market and selling. Renting still remains the tenure of choice for many as well as the only alternative for others and with approaching 18% or so of all housing now in the private rental sector, this is an important part of a mixed tenure market.
Many professional landlords continue to increase their portfolios, balancing the benefits of rising capital values with strong but reducing yields. As stated at the beginning of this article, I believe that the overall position is of a continuing strong market and the autumn will prove a good time for those looking to move home.
There are still excellent mortgage deals in the market place although it is advisable to seek professional advice in order to secure the best deal for your circumstances. As always, the team at Sansome & George are here to assist you with your plans.
David Sansome
Managing Director
