Posted on Friday, August 30, 2013
The last Bank Holiday of 2013 is behind us and the kids are heading back to school. The roads will become busier due to the school run and those summer tans will soon start to fade. The football season has started and the nights are drawing in. September is upon us and with it one of the traditionally strongest times of the year for the property market.
In reality this summer did not see the usual holiday season slow-down of activity and enquiry levels and transactions in both sales and lettings have remained strong.
A slowly improving economy coupled with the confidence given by the new Bank of England Governor Mark Carney on the future of interest rates and the Government’s Help “ Buy scheme is encouraging buyers to see now as their opportunity to move home.
Several reports in recent weeks have indicated growing numbers of first time buyers returning to the market which in turn is enabling chains of sales to be arranged.
Many of these first time buyers have been renting and their move into buying is seeing rental values stabilise as supply and demand become more equal. The rental market remains strong but landlords are, as we have been suggesting they should for some time, paying more attention to the quality of tenant and length of tenancy rather than just the last pound or two of rent.
As demand increases and supply struggles to keep pace, there will, inevitably be some upward momentum in prices. Whilst this is healthy to a degree, we must hope that it doesn’t become excessive and destroy the opportunities for a sustainable market in the months ahead.
Our experienced valuers are watching every nuance of the market and shall be pleased to advise you in regards your specific property.
At Richard Lowth we have always believed in accompanying viewings. We believe it is an important part of the service we provide and that sellers and buyers prefer it. It enables more objective dialogue to take place as buyers are often reticent to express their true views when the seller is present. Many sellers also find it awkward and uncomfortable to talk directly with a potential buyer.
A recent report from Move With Us has confirmed our views and showed that over 60% of potential buyers prefer to conduct home viewings without the owner present.
Robin King, director at Move with Us, said: “Although the homeowner is the person who really knows the property best, potential buyers can often feel uncomfortable in their presence as they are unable to freely view the property and ask whatever questions they like.
“This can prohibit the potential buyer’s ability to fully explore and evaluate the property and decide whether it is their ideal home.
“Psychologically, it’s also important for a potential buyer to feel comfortable as soon as they walk through the door, picturing the property as their new home.
“Indeed, for most people, this illusion can be broken if the existing owner is present. Furthermore, if there’s any tension between the existing owner and buyer, the feelings of negativity can be associated with the property, actively putting off the potential buyer.
“Whilst we may all think we’re great at selling our own homes, owners can comfortably step aside, letting their estate agent do what they do best – sell houses!”
We agree!
As already mentioned, the new Bank of England Governor has signalled that interest rates will not rise until unemployment levels fall further to around 7% of the population. This will necessitate around 750,000 people finding jobs and is expected to take around 3 years at present growth rates.
The stability of knowing that interest rates will remain low for the foreseeable future is enabling businesses to invest and mortgage borrowers to take decisions to commit to buy.
Our mortgage advisers have access to some remarkable mortgage rates at the moment with fixed rate deals of up to five years currently proving very popular.
I believe that the autumn period will prove to be a very strong one for the market with many people who have been holding off moving in recent years seeing the opportunity to do so now.
Naturally, the team at Richard Lowth will be only too pleased to discuss your personal situation, in complete confidence, with you.
Richard Lowth MNAEA MARLA
Managing Director
