08 May Value a House Correctly and It Will Sell …
JUST EXCHANGED – THE VENDOR WANTED TO MOVE AND WE CORRECTLY VALUED IT – THAT IS THE ANSWER IN A DIFFICULT MARKET.
The last few weeks have seen a number of reports and surveys in the media that seemingly contradict each other. One report one day says prices are rising and another report on another day says they are falling. Mortgage lending figures and transaction levels are also seemingly moving up and down at will.
The reality is that the national market is in a period of flux with huge regional and local variations. The increases in taxation and cuts to public spending are beginning to bite for everyone but are having greater effects in some locations than others.
Unemployment levels haven’t, as yet, risen dramatically and the Bank of England has held the base rate at a record low level for over two years, preferring to see slow and steady growth in the economy rather than curb inflation which is running at a slightly higher than desirable level.
Locally, in the Chalfont’s, Rickmansworth and Gerrards Cross and surrounds, the picture is a strong one when compared to the national scene. Of course we have all noticed the rises in the cost of petrol and at the supermarket but the area is not heavily dependent upon public sector employment or any one employer. The excellent transport links bring London and the Home Counties within easy reach and this catchment area has an overall low level of unemployment which is one of the key drivers of the housing market.
The old adage of it being location, location, location that is important in the housing market is always true and never more so than in a challenging economic climate.
Of course transaction volumes are not running at the levels they were back in 2007 but they are steady and demand remains strong. The lack of availability of mortgages has seen many unable to borrow to buy and a growing and buoyant private rental sector has emerged as a result. It is now estimated that around 16% of households are living in private rented accommodation and the number of owner occupiers has fallen to around 67%. The balance between these two figures being households in the socially rented sector.
Whilst property values are steady, sensible pricing remains key to a successful sale. Ask too much and your property will go stale in the market very quickly, get the pricing spot on and good sales are being made.
The surplus of demand over supply has seen lettings values increasing steadily and yields improving significantly for landlords. Ensuring a high quality of tenant is vital in order to avoid any void periods as even just a few weeks without rent can make a huge whole in the investment value of a rental property.
My own views are that there is a good current market for both sales and lettings with excellent values being achieved within each market. It looks likely that interest rates, whose next direction must be upwards, will stay lower for longer than expected too.
Naturally, like the housing market, every property and every individual’s circumstances are different and at Place we ensure that we deliver a bespoke and personal solution to every situation.
If you are thinking of selling or buying, letting or renting, visit our website at www.a-place.co.uk or contact me today firstname.lastname@example.org and find out how the Place difference can work for you.
Sarah Cassidy MNAEA