Market Update - June 2013

April’s showers dutifully turned to sunshine but May then saw even more showers as our unpredictable weather continued to tax the ability to leave home in the right type of clothes!

The property market is often no more predictable although there are some genuine signs of positive change occurring albeit these are small and often moving at a slow pace.

The plans announced by the Government to help buyers buy a new home and, from next year, to get a larger loan to value mortgage are being seen as catalysts for greater buyer activity particularly amongst that rarely seen species of the last few years, the first time buyer.

Many would be first time buyers are currently renting but a recent report from Rightmove indicates that many of these would look to buy if the circumstance were right. The “Help to Buy” scheme that starts next January is being seen as a possible launch pad for them to make a move from renting to buying.

New home starts (registrations) were at their highest level in the first quarter of 2013 for five years, a sign that developers now feel they can not only sell but do so at prices that are economically viable. A recent report showed that new home prices have risen nationally by 12% over the last five years.

So what does this mean for the second-hand market?

The market is always driven by the balance between supply and demand and there are some signs of increasing demand, helped by slightly easier mortgage conditions. Supply has also increased but is slightly behind the curve when balanced against this growing demand.

Prices are stable or moving gently upwards with some exceptional properties or properties in highly sought after locations achieving truly excellent prices where there is competition amongst buyers to secure the property.

Correct pricing is still key but is resulting in excellent interest, activity and transactions.

The lettings market remains buoyant although the days of rampaging rent increases are subsiding and landlords are becoming more keen to secure a quality tenant who is capable of meeting their obligations for the length of the tenancy rather than just the highest possible rent.

The mortgage market is awash with schemes and there are some excellent deals available for house purchase, buy to let investment or re-mortgage. Our specialist advisers will be pleased to discuss your personal circumstances and tailor a deal especially for you.

Many families wish to secure a home in readiness for the Autumn school intakes and that means doing so in the next few weeks.

My prognosis therefore for the next few weeks is one of heightened activity and an improving confidence in the market overall.

As always, the team and myself at Lawrence Rand look forward to being of service to you.

Peter Lawrence