Has the bubble burst ?

 Discussing the market last week with my Stacks colleague Rachel Johnson she summed up the situation so eloquently that I give it here:-

“A blanket assumption that you can now haggle on price is erroneous.  The properties being discounted are those that had their vendor’s price expectations set around May, and were probably over-egged at the time.  For those that kept that pricing strategy but didn’t come on until Autumn, that’s where you’re having to take the big price-chips.

Realistically priced homes will not need to price-chip, as there are plenty of buyers that have not managed to find.  It is still your job as the buyer to present yourself as the best, most reliable buyer that the agent can wholeheartedly recommend as the one that will stick with it. Being chain-free or able to break a chain will still be the most prized characteristic in a buyer.

Not all vendors are equally motivated – you’re aiming to understand what is their driver for the move.  You can easily offend with a price-chip, and some vendors will cut their noses off to spite an insulting offer.  Getting things thrown in to the deal is always a more long-term strategy – arriving in a new community when you’ve been bad-mouthed by the popular family leaving won’t be as nice as being introduced at the vendor’s leaving party to your new neighbours – some things are worth more than a few ££.

We are already seeing more properties that are technically off-market – open to being bought but not visible on the portals. You won’t get a bargain with these, but you might get the right house…………..”


A new Prime Minister and promised stability bodes well for a market which was white hot here for most of last year and the first half of this year. Now common sense is setting in and supply is increasing. However demand for quality rural properties still exceeds supply although the frenzied feeding has abated. Despite a little more supply, correctly priced better properties are moving and more and more prime properties are being offered away from the portals. Underneath the surface of this interesting market we have been conducting more off market acquisitions than ever before. 

The pace of activity over the previous eighteen months has been a problem for the conveyancing system, which despite technical advances in every other sphere, remains chained to archaic practices and means that there can easily be three or four months between acceptance of an offer and exchange of contracts. Preparation of the purchase finance, a really good conveyancing solicitor and research of the target property by your buying agent are key to success as is understanding the substantial stamp duty savings from the mixed use and mixed title concessions on which we advise on regularly.

It is impossible to tell whether the rock and roll ride we have experienced will level out or crash out but what is certain is that the gap between London and the West Country is smaller now than for many years. We used to reckon that a two bedroom flat in Chelsea was the equivalent of an Old Rectory here. That equation has fluctuated over the years but at the moment you will only get 3/4s of an Old Rectory for your two bedroomed flat.

One of the reasons for this dramatic change is that Londoners who sought refuge here during Covid have realised that it really is possible to do an awful lot of work at a distance and consequently want to stay; some of them will be here for good. Whether there will be quality stock for them in what has been a tight market will be interesting to see. What is certainly true is that vendors experiencing a flat market in London are surprised to be confronted by the high expectations of agents and vendors here. This gap in expectations is making the market particularly tricky as so many local vendors of better properties are discretionary. 

One of my favourite country houses, near the Devon and Somerset border, was launched after Lockdown 1 and sold within days to a family with young children who are actually going to live here rather than weekend which is a huge bonus for us locals.

Despite political and financial turmoil, the essence of what I said in last Summer’s interview (below) remains true but if you would like a more detailed analysis, or a chat about a particular property or area, just give Nick or me a call.

Nick 07977 490574         Gideon 07966 425977

December 2022


A Q & A session with a regional journalist last year…….

Q) What factors affect the property market in the South West?

Owners of better properties here are mostly discretionary vendors. Discretionary vendors are motivated by sentiment as much as anything else and that sentiment turned positive in the Spring. Due to the much more certain outlook they are calling selling agents and requesting valuations after several years of sitting on their hands. They are however still very cautious and consequently many are offering their property on the grey market rather than via the portals.

These discretionary vendors do not have to move to get their child into the right school by the autumn, their children are grown up and they will sell only when they feel they have been offered fair value. Fair value to them is often coloured by agents giving fanciful valuations at a time when they are critically short of stock. A probable increase in stock together with a likely increase in demand is likely to unblock the current constipated state and make for a much more fluid market. However I don’t believe this will result in price increases as buyers will rightly remain cautious, that is unless the government really does press the spend button and the market goes into boom mode. 

Q) Are there particular regions/segments that stand out as particularly good performers?

The price contours of the West Country are quite complex and remind me of the Venn diagrams we did at school. Where a property falls within the three spheres of good communications, good schools and an agreeable landscape, values will be strongest. Fashion also plays an important part too; if you want value, avoid the spots that central Londoners holiday in. These ghettos also suffer worst during times of financial instability.

Q)  How will the delivering of Brexit affect South West property?

The London market is alive again boosted by increased confidence from native buyers and the safe haven it offers overseas buyers. This is allowing those who have been trapped by a lack of purchasers to reconsider their lifestyle moves and look further afield. In my opinion Stamp Duty is still much more of an issue than Brexit uncertainty has been and it is worth bearing in mind that many rural properties in this part of the world are eligible for mixed use stamp duty which can give dramatic savings. Many overseas buyers do not “get” the West Country in the same way that we do so their influence will always be vicarious by driving indigenous Londoners to the provinces. 

Q) The government has promised to boost infrastructure spending in the South West.

All my life the West Country has suffered from a lack of investment in infrastructure. When I first started driving I looked forward to the day when the A303 would be dualled all the way. It never happened and the M5 never got beyond Exeter despite various promises. We have a dual track train service to London on one of Brunel’s finest lines. The outdated rolling stock is only now being replaced with new carriages that not only are just as cramped as the old ones but the seats are even more uncomfortable; you cant even get a cup of tea because there is no buffet car! West Country people have overcome these irritations to establish an enviable quality of life and I think it is their ability to laugh at adversity that makes them special. 

Q) Were I someone looking to invest in the SW what are the pitfalls?

Always buy the best you can afford. That ruined Old Rectory the other side of Holsworthy may look extraordinarily cheap but there is usually a very good reason. I can think of two that have had indifferent but expensive refurbishments and cannot be sold at a sufficient figure to cover their costs.

Q) Were I looking to sell within the SW, what would be your advice?

The agent coming to pitch for your sale will often not be the one who starts the transaction. More likely this will be the young man or woman at the office who picks up the telephone. How this first enquiry is dealt with is crucial, do some mystery shopping yourself, pick a property similar to your own, call the selling agent and see how your enquiry is dealt with.

So chose an agent you can engage with who has efficient staff, not the one suggesting the highest selling price. They practically all have good websites now so there is little differentiation in their offer other than the quality of their staff and the size of their fees.

Q) Overall are you optimistic, or cautious about the short-medium term?

If you live long enough property is always a good bet but the public prefer their jam today rather than tomorrow. I do not believe property is ever a suitable short term investment as quite apart from the risk of catching a change in market sentiment, the costs of trading eat away at a large proportion of any possible gain. My advice is buy a property that you love and that will enhance the well-being of you and your family; your family is after all your most important investment. If you get some growth in value then think of that as a bonus.

Gideon Sumption


You may also be interested in

view more

Spring 2024 – Devon and West Somerset Residential Property

So here we are on the brink of Spring (hopefully). The sun has broken through the grey and rather leaky roof that has been over our heads for the last five months for a glorious day of warm sunshine last Sunday which was good news for the local Point-to-Point, and...

Autumn 2023 – Devon and West Somerset Residential Property

Back at the beginning of 2023 we predicted that it could be a good year to buy in this part of the world. So how has the year panned out so far, and what’s happening right here – right now? This year the market took a while to get going, not...

Outlook for 2023 – Devon and West Somerset Residential Property

The property market here was noticeably quiet in January, compared to the frantic activity that we have seen in 2021 and 2022. We hope that this signals a return to more normal conditions for buyers and that we will see less sales concluding with Best & Final Offers, where the...

Class Q: Understanding a new route to creating a rural home.

Current rural planning policy precludes residential development in open country except for Agricultural Occupancy Restricted Dwellings (in theory necessary to accommodate agricultural workers) and class Q of the General Permitted Development Order. Development is directed to sites within defined “settlement limits” of rural villages. Not only does this go against...

Start your property search today

Call us on +44 (0) 1594 842880 or complete the form below

    Your Details

    Your property requirements:

    SoldThinking of movingOn the marketExchangingIn rented accommodationCash buyerIn need of helpOther

    We will never share your details with a third party. For more information about how we handle your data, please see our Privacy Policy

    How we can help you

    View our property finder services

    When making probably the most important financial decision of your life, it pays to have the right advisors at your side.

    Property Finder Service

    We search high and low, on the market and off the market, and we keep hunting until we’ve found the right property for you. Next we negotiate the best price and terms on your behalf. And then we make sure you enjoy a hassle-free move.

    Downsizing or Resizing

    Retirement or semi-retirement is an exciting stage in life. Finding the right home to live in and enjoy it to the full is important. We know that and will do all that we can to understand what you’re looking for… before starting to search. And search we will, until we find the house of your dreams.

    Moving from Abroad

    Relocating is time consuming and stressful. We regularly work with clients who live abroad. We hunt, short-list, prepare your viewings, and make the search process as easy as possible. We oversee the negotiations, manage the conveyancing, and deal with the headaches, so you can concentrate on other aspects of your move.

    Holiday Home Hunt

    A holiday home is often an interesting mix of investment and heartfelt connection. You want to use it, but you may well also be keen for others to use it too. We can advise you on what factors to consider in making your decision. And we can then find the perfect holiday home for you to enjoy.

    Investing in UK Property

    Others say, ‘location, location, location’. We say, ‘location, purpose, price, capital growth, rental returns’… the list goes on. Knowing the market is critical. Local knowledge is key. We ensure all aspects of your investment decision are addressed. Finding, analysing, negotiating, and completing… it’s what we do.

    “You showed fantastic attention to detail, anticipated all eventualities, and provided timely and practical help and guidance every step of the way.  Above all, you supported me in making my own considered decisions, and I am so grateful to you for all your help in getting me to where I am now!”

    “We firmly believe that without Rachel and her skilled negotiation we would not have secured the property.”

    “We felt they genuinely wanted to help.”

    “Stacks’ performance on this assignment has been absolutely outstanding and more than met my expectations. Her understanding of the brief and the ‘after-find’ service set a standard of professionalism that I have not met before.”

    “It is not often that one is pleased to part with money but I can truthfully say that I am on this occasion. You have earned every penny of this cheque and what is more, you have done it with great courtesy and good humour. It has been very pleasant working with you. You really did take most of the stress out of our house hunting.”

    “Encouraging me to think creatively about what could work for me.”

    “Finding a plot not yet on the market and persuading the developer to enter into an exclusive contract with me to build to my specification.

    “I was impressed by the efficient, kind and courteous service provided by Stacks”

    “Stacks were a tremendous help and we would never have found our home without them. She is a lovely person with a great sense of humour which was essential during some of our tricky negotiations

    “You gave a much-valued ‘younger’ perspective on our situation, which was a real asset”

    “We found the service extremely helpful and professional at all times”

    “I have been delighted with the service I have received from Stacks and will not hesitate to recommend Stacks in the future.”

    Subscribe to our newsletter

    Receive updates about the world of property, straight to your inbox.

    * indicates required