Property Market Update
30th June 2017
30th June 2017
Whilst uncertainty, created by the recent General Election, is never good for any market, there is still a basic need for people to live somewhere and, despite the distractions, the underlying mechanics of the property market continue unabated.
Overall we have more demand than supply and need more accommodation across all tenures, owner occupied, private and socially rented.
Housebuilding has increased but only marginally and much greater numbers of new builds are required.
Whilst increasing inflation usually heralds an increase in interest rates, this is unlikely in the foreseeable future as the inflationary pressures are largely due to costs not spending. Mortgage interest rates are therefore likely to remain at historic lows for a prolonged period and the availability of attractive fixed rates may entice people to move and secure their funding costs for the next few years.
Affordability is probably the overriding factor governing transactional volumes at the moment and both sellers and landlords need to be competitive in order to attract committed buyers and tenants who will make a purchase or renting decision.
The last few weeks have seen some signs of increasing levels of stock coming to the market and greater numbers of first time buyers purchasing, often with assistance from the bank of Mum and Dad.
Some excellent prices and rents are being achieved but usually only when the asking price is competitive enough to attract interest from multiple buyers and tenants.
All in all, the market is not flying but it is steady, demand remains strong with buyers and tenants being discerning in their choices.
Advice on pricing your property correctly is crucial, as always we are on hand to assist.