Market Update

Where did 2014 go?

Well, I know it’s not quite over yet but the year has simply flown by and has almost been a year of two halves in the local property market with frantic levels of activity in the first half and a more considered and “normalised” market emerging in the second half of the year.

Certainly it has been a positive time with greater volumes of sales transactions and real increases in property values. The lettings market has been steadier in terms of volumes but has seen the majority of “accidental landlords” (people who saw renting their property as the only route to being able to move home following the economic issues of 2007-9) leaving the market and committed professional landlords take up the shortfall created.

Mortgage interest rates have remained low with the Bank of England base rate at 0.5% all year. A few months ago it was expected that the base rate would have risen by now but current thinking is that this may not happen until later in 2015. This provides opportunities for potential buyers to buy and take advantage of the plethora of low fixed rate mortgages still available.

As we move towards the end of the year many people naturally think of holding off their moving plans until the New Year. This is understandable but it is a fact that the busiest time of the year on the major property websites such as Rightmove and Zoopla is the period between Christmas and the New Year. This period is therefore actually a superb time to bring a property to the market for sale or rent as it will be seen by the huge numbers of fresh buyers and tenants who, having finished the turkey sandwiches, immediately turn towards house-hunting! Because many sellers and landlords do hold off until the New Year it also means that the competition for those buyers and tenants is less fierce and there is a great opportunity to maximise the chances of a successful transaction.

2015 looks set to be another positive year for the property market with low interest rates, increasing employment and low inflation. Prices are also stabilising. Of course, we will have a General Election in May which looks too close to call and this may cause a short period of indecision during the lead up to voting day.

The major parties all understand that the property market is vital to the health and wealth of the nation although Labour and the Liberal Democrats seem to be particularly keen on increasing regulation and imposing taxes on the owners of property with higher values.

Sensible increased regulation of the lettings market is undoubtedly required in order to remove the rogues and create a level playing field which is fair to all parties. I just hope we don’t see too many sledgehammers being used to crack the nuts!

Finally, on behalf of the team at Lawrence Rand and myself I would like to take this opportunity of wishing you, your family and friends, the very best wishes for a Merry Christmas and a happy, Healthy and Prosperous New Year.

Yours

Peter Lawrence