Market Update

The clocks may have gone back an hour but the property market is still looking forward with cautious optimism.

Despite impending factors such as a likely rise in interest rates and next year’s General Election the underlying market remains strong and positive with demand continuing at good levels in both the sales and lettings markets.

The “affordability gap” has widened for many in recent months and this is naturally putting the brakes gently on house price increases but those properties that are being sensibly priced are still attracting good interest and achieving good prices.

The general economic figures are encouraging with inflation low, the UK growth rate the best in Europe and numbers of unemployed falling at the fastest rate for 40 years. Of course, Government curbs on spending have not created much of a “feel good” factor but we are certainly operating as a nation in a slow and steady forward direction.

An increasing population coupled with the fact that we are all living longer brings pressures on all aspects of our society and the housing market is no exception. Despite increases in house building in recent years we are still many tens of thousands of units a year short of that which is required to meet demand and this factor alone is likely to ensure that demand outstrips supply and ensures that prices hold up or increase into the future, albeit at a slower rate of increase than recently as a period of letting wages catch up will be needed.

Buy to let investors are active and there are over 700 mortgage schemes now available in this sector alone. This demonstrates the continuing confidence in the buy to let market where investors are generally taking a long term view based on yield and capital growth.

Now is a good time to market a property for sale due to the continuing availability of mortgages at attractive rates. With interest rates certain to go up in 2015 there remain many serious buyers and sellers looking to transact now in order to secure financing on these rates.

One thing that is clear in a market that is in a period of adjustment is the need for sellers and landlords to use the services of a good quality, full service estate agency who combines both online and offline marketing with the knowledge and experience of an established professional team who understand the local market and what is happening in the market place.

As always, the team at Lawrence Rand and myself are here to assist.

Yours

Peter Lawrence
Managing Director