What’s Happening To The Property Market?
Marcus Grimes reports – “It is a question I am asked almost on a daily basis. Some from people just making polite conversation and others who are genuinely desperate to know what is going on currently and where will we all be in 6 months time. As always the crystal ball is hidden away in my brief case and when I have a moment I whip it out and stare longingly into its watery glass.
Every agent will have their own take on whether the property market is going up or down or just hanging around. Property is a notoriously regional thing and the south east is the boiler room that creates most, though not all the heat in the UK. London’s property values like the sun, radiate power and strength out to the home counties with a consistency that belies other economic indicators. Year after year, same old, same old with new territories within the capital becoming the latest hot spot.
So when the London market peaked in the summer of 2014 and the election announcements started to draw political soundbites on such things as the Mansion Tax and Non Dom persecution understandably there was a whiff of ‘Market Correction’ in the air and faster than a slamming door the buyers quickly shrank away, forcing London agents to advise clients to drop prices by as much as 10% to stand a chance of a sale. This all had a horrible effect on those of us out in the sticks who had grown to rely on the yummy mummies flocking out of SW17 and SW19 in search of their child’s new school and the commuter friendly country pad. It was squeaky bum time for a fair few months running up to the election and it wasn’t until the exit polls suggested a clear majority was on its way in a starboard direction that us property boys could breathe a sigh of relief.
Since then the mortgage tills have been ringing and demand has leapt again, with the new and troubling problem of ‘lack of supply’. Free market forces are at play once again and with so little coming up for sale the Sunday Times property correspondent was forced to include Haywards Heath and RH17 in its top 10 hot spot postcodes within the UK (7th June 2015). At the time of writing this there seems no obvious time for this log jam to break and as a consequence I see prices continuing to harden for certain types of property over the rest of the summer. No doubt there will be a few more instructions about but I see no tsunami of property coming to the market anytime soon. In the meantime, if you are a home owner living in the south east, thank the lord you’re on the ladder, whatever rung that may be.”
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