In our last newsletter, quickly written and circulated immediately after the BREXIT result, we predicted: “in the short term, we at H Tiddy are advising both sellers and buyers that we could have a wave of increased activity over the next few months”.
This has most certainly been the case. Stronger demand, combined with a shortage in housing supply and lower interest rates, has resulted in certain properties entering a competitive bidding situation, with offers and subsequent sales dramatically exceeding the initial guide prices advertised.
The recent Royal Institute of Chartered Surveyors (RICS) Residential Market Survey results points to a national gradual recovery in confidence following a significant drop immediately after the EU referendum. They predict prices and sales volumes are now expected to rise going forward, both at three and twelve month horizons.
The RICS said that in London however, the net balance remained negative with 30% more respondents noting a fall in prices. By way of contrast, a net balance of 10% of national respondents are anticipating prices will continue to rise modestly in the UK, with predictions of 3.3% per annum growth over the next 5 years.
Martin Ellis, Halifax housing economist reported on 7th September “house prices in the three months to August were 0.7% higher than in the previous quarter”. The Halifax reported a seasonally adjusted annual rate of growth of 6.9% although the rate of growth is slowing down with signs of softening in sales activity.
Richard Sexton, director of e.surv, reported: “It’s not surprising to see only a nominal monthly change in transactions at this time of year. The housing market remains resilient and open for business.”
“The Brexit vote has had little impact on the UK house buying public” HMRC suggest, “with a slight rise in transactions in August, with a total of 109,630 properties bought in the UK during the month”.
A strong percentage of our second home buyers live and/or work in London. Even though the City is going through a re-adjustment, we feel most of our buyers and sellers agree and understand that one cannot have consistent excessive house price growth for a sustained period without a re-adjustment at some point over a 10 year cycle. Over the last 5 to 10 years, we at H Tiddy have seen the price gap widen in average house prices in London compared to Cornwall. For example, an average price for a 4 bedroom period terraced house in Notting Hill is around £4 million compared to circa £3 million in 2011 and roughly £2 million in 2006*. Simply visit our web site (www.htiddy.co.uk) to check out the price differentials and see how much more property you can buy for your money between £1.25 million and £3.75 million.
Many of our clients strongly believe bricks and mortar will remain a safe investment, especially in property hot spot areas such as Cornwall. Now is the right time to buy and sell.
Free No Obligation Valuations
With the dramatic changes in the economy over the last year, many homeowners may now be unaware of the present value of their property. Please contact us on 01326 270212 for confidential and free advice.
Mark Willson MNAEA
Released: 23rd September 2016
* Source Zoopla market activity zed sold price index for 4 bed terraced houses in Notting Hill. (W11).