Autumn 2014 – New Reality or same old, same old?

2014 is already proving to be a much better year for the UK property market. Not as good as many expected, but expectations were always going to need to be managed.

But what do we mean by a ‘better year’? Basically – more stock, more transactions, more people moving. More people are putting their properties on the market so that they can move for any number of the reasons that people want and need to move house e.g. work, family, downsizing, lifestyle, investment.

Prices have stabilised in London, and the Country market is facing similar pressures, particularly from the tough new mortgage regime.

The fear of a Bubble has receded. Well done, Mr. Carney – Round 1 to you.

Is London OK? Yes.

So the UK property market actually remains pretty STEADY.

Those looking to move from London to the Country are still being presented with a once-in-a-generation opportunity to swap a moderate London property for a spectacular rural home. If you are planning to make the London-to-Country move in the foreseeable future, depending on your circumstances and position, you want to start get on with it.

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.

Competition for good stock will be fierce over the rest of 2014 both in London and the Country. But buyers should not be over-enthusiastic – paying over the odds should only be considered for the very best in class.

The divide between London and Commutable Country remains constant, and both continue to distance themselves from the rest of the Country. As forecast, internal domestic intra-London activity has strengthened with strong demand for family homes and flats in the residential areas of London, and there is plenty of supply now.

We are seeing improved activity in the Country. There is money from property sales coming out of London and making it’s way into the Country – as expected, there is an increase in Londoners cashing in on good London prices and moving to the country. As usual, the M3/M4/M40 corridors and the West Country are strong.

The property market is about people, and people have to move house – there are now over 5 million properties that might have been expected to change hands since 2007/08, 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. However, many properties are being ‘marketing quietly’ e.g. agents are seeing what interest there may be in a property, without going to the expense of marketing and brochures, or even placing it on a property portal.

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’.

If you are selling and buying, start looking for your new home now, and certainly from the moment that your current property goes on the market. (If you want help getting a good local estate agent round to ask their advice on selling your property, just contact us and we will put you in touch).

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

To hear more, contact us and our local offices.

James Greenwood