Market Update

2014 has started positively in the local property market with good levels of sales and lettings enquiries from buyers and tenants looking to purchase or rent.

This continues the momentum created by a much improved market in 2013 which saw leading property website Rightmove report a 21% increase in visitor traffic throughout the year.

Whilst the level of property coming to the market is currently a little behind that needed to meet demand, I feel certain that, as confidence amongst sellers, in particular, increases, this imbalance is likely to reduce and the market will operate strongly and effectively.

Prices have been rising and some excellent sale values are being achieved. Whilst rental values have steadied, strong yields are still being obtained and landlords are also gaining from capital growth. Many landlords are taking the opportunity to increase the size of their portfolios through further purchases.

Interest rates remain low and look set to do so for at least the next year and news of the general economy is positive with reducing unemployment and increasing levels of growth. This is creating greater confidence which, in turn, underpins the market.

The combination of mortgage interest rates remaining at record low levels coupled with increasing confidence and performance in the general economy and forward momentum in prices is creating the basis for an active sales market.

The Government’s Help 2 Buy scheme is also helping generate more interest and many people who felt unable to move in recent years are now seeing the opportunity to either buy for the first time or make an upward move in the market.

Whilst the numbers of people who may actually use the Help 2 Buy scheme is relatively small, it is generating fresh interest and desire in moving home and has increased the activity at the lower end of the market which, in turn, is filtering upwards across all price ranges.

Unbelievably, we have already seen about 10% of 2014 come and go and the next few weeks will see us enter the traditionally most buoyant period of the year with many people looking to secure a transaction in order to be able to move by the summer and in readiness for school intakes in the autumn.

The outlook for the market in 2014 is positive and is likely to be looked back upon in years to come as being a good time to make a move.

As always, the team and myself will be only too pleased to discuss your individual situation and advise in complete confidence.

Peter Lawrence