With a sequence of Bank Holidays and improving weather, the property market remained active with good levels of viewings and offers in both sales and lettings. There is undoubtedly a ”structural issue” developing in the market with demand continuing to outstrip supply and, in turn, creating upward movement in prices and increased urgency amongst buyers keen not to “miss out” on a potential purchase.
Indeed, the National Association of Estate Agents says that in March, supply dropped for the sixth consecutive month and is nearing a ten-year low.
You could see this as good news if you are selling but it will, at some point, have to adjust unless the stock of property for sale starts to match the levels of demand.
Government intervention in the market through Help 2 Buy has boosted buyer confidence and led to a small increase in new home volumes but it will require an increase in the numbers of properties coming to the market in the second-hand sector to ensure that the market can remain as positive as it has and maintain a sensible balance between price growth and volume.
Many potential sellers are waiting until they find a property before committing to the placing their properties on the market. This is, in reality, part of the problem rather than the solution. Anyone thinking of selling should look to place their property on the market ahead of finding an alternate property to buy. This will enable the maximum price to be achieved free from pressure and also place the seller in a better buying position. Our experienced team of valuers will be please to advise you about your personal situation.
One major change that will impact on the market is the introduction of actions following the Mortgage Market Review. These will undoubtedly make obtaining a mortgage a longer process with many more criteria needing to be met and may have the effect of slowing sales and dampening down activity in the short term. I am sure that the changes will soon become the “norm” but the need to take professional advice when seeking a loan has never been more critical. Our financial advisers will be please to assist.
The lettings market is seeing many landlords extending their portfolios and confident about the future whilst tenants are generally becoming a little more choosey over the quality of property they decide to rent. Values are steady although yields as a percentage have fallen as house prices rise.
Many experienced tenants are specifically seeking well managed property rather than properties where the landlords are directly looking after the management and rent collection themselves as they know that any issues will be resolved easily and professionally by the agent. With news about letting agent fees in the headlines and all letting agents about to be required by the Government to be a member of an approved redress scheme, this emphasis on using a professional agent is likely, and quite rightly, to increase. As always, the team and myself are here to assist with any questions you may have regarding selling, buying, letting or renting and very much look forward to speaking to you.
To discuss your home sale or purchase in more detail please contact your nearest Sansome & George office.
Kind regards
David G Sansome
Managing Director
SANSOME & GEORGE
