Market Comment Spring/Summer 2013

The UK property market remains very steady.  The biggest impact on value is inflation, which many believe to be considerably higher than the measures used by the Bank of England, so values outside Central London are generally being eroded.

Central London and not-so-Central London are defying all expectations so far this year.  Prices are rising and properties are selling fast.  Not so the rest of the country – and those looking to move from London to the Country are being presented with a once-in-a-generation opportunity to swap a moderate London property for a spectacular rural home.

From a buyers point of view, vendors have absolutely no excuses for asking excessive prices now. Vendors, please, please, please no more silly asking prices.  Speak to your local estate agents. Trust their judgement as to the price your property will sell at.

However, there is not alot of property available, and competition for limited good stock can be fierce both in London and the Country.   But buyers should not be over-enthusiastic – paying over the odds should only be considered on the very best in class.  However, finally, a trickle of the Quantative Easing cash seems to be making it’s way through – buyers are finding it a little easier to secure mortgages with reasonable rates and terms.

There is a real divide between London and the rest of the country. London will see continued foreign investment from different sources and at different scales, so well may be wider than just Prime Central.  As forecast, internal domestic intra-London activity is strengthening with strong demand building for family homes and flats in the residential areas of London – the Nappy Valleys of SW London are seeing properties at all levels selling fast.

We are seeing continued activity in the Country. There is money from property sales coming out of London and making it’s way into the Country – and we expect an increase in Londoners cashing in on good London prices and moving to the country over 2013. As usual, the M3/M4/M40 corridors and the West Country are strong. We see no dwindling in demand for quality Country property.

The property market is about people, and people have to move house – there are now over 3 million properties that might have been expected to change hands over the last 4 or 5 years, which haven’t. Mainly because they haven’t come to the market.

A great many houses are potentially for sale, but not on the market, and there are unlikely to be as many properties openly available for sale as people expect. However, the suspension of HIPS’s has allowed agents to go back to the time-honoured practice of ‘marketing quietly’ e.g . seeing what interest there may be in a property, without going to the expense of marketing and brochures.

The clever vendors are aggressively marketing their houses with good agents at the right price – a keen, competitive, fair and reasonable price. Our advice to sellers would be – ‘be realistic’. There is little point in hanging out for top price – you won’t get get it – you will wait and wait – and wait.

If you are selling and buying, start looking for your new home the moment your current property goes on the market. Proactively seek out what you want and, when you find it, negotiate firmly (which may enable you to drop the price on the house you are selling).

On the assumption that most people have to buy AND sell a property, it’s a good time to be moving. And for families living in London, a generational opportunity to buy in the Country.

To hear more, contact us and our local offices.

James Greenwood

 

Generation game: the return of the extended family home.

How do you buy a spacious family home when money is tight? Join forces with the grandparents and double your budget. Max Davidson reports on the growing trend of multi-generational living.

The number of our buyers considering this as an option is increasing by about 50 per cent a year, and it is not hard to see why,” says James Greenwood, managing director of Stacks Property Search. “You get exponentially more bricks, mortar and land for your money, so pooling resources can buy a significantly bigger space.”

In the upper/mid-end of the market, certainly within commuting distance of London, competition for large family homes is fierce. If you can combine two budgets to take you beyond the £900,000 price bracket, you catapult yourself into a different league. Suddenly stables, paddocks, swimming pools and other luxury add-ons become a practical possibility.

“Grandparents may be sitting on a great deal of wealth in their own home and the next generation may be struggling to finance a large enough property to accommodate a growing family,” adds Greenwood. “Combining resources should provide adequate space for all, with the added benefit of grandparents on hand to enjoy, and help look after, their grandchildren. Then the children can help with their grandparents’ needs as they grow older. It can be a win-win situation.”

“The separate annexe is the ideal arrangement for an extended family,” says Greenwood. “It is important that both generations have their own distinct space, with separate entrances if possible.”

He counsels caution, however, in entering into living arrangements that may not be easy to unpick. What will happen when your children leave home? Or when your parents become dependent themselves? If a property has been tailored to your needs, how easy will it be to sell? There are umpteen contingencies that need to be taken into account. You can’t just wing it when there are so many human lives involved.

Read full story here ( link to Daily Telegraph Online website)

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If you would like James Greenwood, to help you with your property search Please call on 01594 842 880 or email at Jamesgreenwood@stacks.co.uk