Summer 2014 – OK, who wants to move?

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 being managed. The 2007/08 crisis was a major shock to the UK property market, but the wounds are healing.

But, please, let’s not get too exuberant and have another accident. Luckily, London is showing some signs of having some good common sense – prices are still rising but they are plateauing, especially above the £2m mark – and that must put a dampener on the wider market.

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

But there is still not enough stock to supply demand, and prices will continue to rise in areas that are fashionable and popular – and not just in London, the Country market is facing similar pressures now. We have had to ward off gazumpers on a number of properties we have bought for clients this year.

But is there a bubble? The answer is yes AND no. What’s happening is that the market is still weak and brings forward limited stock that is pushed unbelievably quickly to a new level in some parts of the country and on some properties. And inflation that started in London is spreading out fast into the Home Counties and further afield.

Is London OK? Yes.

So the UK property market actually remains pretty STEADY.

Central London and not-so-Central London defied all expectations over 2013 and the beginning of 2014. Prices rise and properties sell 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. If you are planning to make the London-to-Country move in the foreseeable future, you want to start getting ready now.

From a buyer’s 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.

Competition for limited 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. However, at last, a trickle-turning-to-a-flow 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. But hurdles to obtain a mortgage continue to be raised, so speak to a good mortgage broker about your position.

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

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 demand for good Country property is rising.

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, and there are unlikely to be as many properties openly available for sale as people expect. 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