Market Update

February saw the property market move into a higher gear as the weather, whilst still wintery, was milder than January and this made it easier for people to attend viewings and get their home moving plans underway.

The month saw us achieve excellent levels of both sales and lettings with strong prices being obtained from committed buyers.

The inevitable consequence of an active sales market is that stock levels of instructions come under pressure and it would make for an even stronger marketplace if potential sellers brought their properties onto the market at the earliest opportunity. This will have the effect of creating even more confidence through greater choice and ability to close chains of transactions.

The lettings market also remains strong and the average length of a tenancy continues to increase which is good news for landlords as stability of tenure leads to improved yields.

Confidence in the buy to let market is high with several recent reports indicating the desire of landlords to increase the size of their portfolios. The average UK landlord now has some twelve properties in their portfolio.

Recent figures showed that there were less than 100,000 new home starts in 2012 which is around 150,000 less than it is felt is required in order to meet the demands of a growing population and changes in household sizes. This will, almost certainly, help ensure that property values remain strong in the years ahead.

Of course, employment levels and inflationary pressures play a part with both confidence and ability to spend but we are fortunate in our area that, in the main, the economy is slowly edging forward albeit almost imperceptibly at times.

Towards the end of the month, global ratings agency Moody’s downgraded the UK’s credit rating from AAA status (the highest) to AA1 (the second highest). Whilst this is not welcome news for the UK economy as a whole it is likely to ensure low borrowing rates on mortgages etc. remain very low for some time. Indeed, fixed rate mortgages are at their lowest interest rate levels for years with several schemes at headline rates of around 4.25% (fees can sometimes apply so always speak to our advisers who will happily go through the detail with you).

Overall, my view is that the market is continuing to show some signs of improvement and that greater numbers of people who have held back from moving in the last few years are taking the view that now is a good time to move.

Naturally, the team and myself will be only too pleased to discuss your individual circumstances and look to assist you in your plans.

Peter Lawrence
Managing Director