Property Market Comment - October 2016
Just as the General Election had an impact on market conditions during 2015 the Brexit referendum had a similar and more pronounced effect this year. During the run-up to the referendum and immediately afterwards the market remained relatively quiet due largely to the uncertainty.
Since late August there has been a noticeable and significant upturn in activity. During the last two years supply of property coming onto the market has consistently been at lower levels. The supply side has now improved marginally, but demand has increased and buyers have returned to the market throughout the price ranges. As a result demand continues to exceed supply and therefore sale prices are gradually increasing.
Investors have also returned to the market despite the additional 3% stamp duty now being charged. Property remains a popular choice of investment with increasingly attractive returns and the prospect of improving values. The prospect of negative interest rates and general banking uncertainty has also encouraged an increasing number of investors to return to the property market.
Reaction to Brexit in the commercial market has been more mixed with some sectors showing increased confidence whilst others have been considerably more cautious. Nevertheless sales and lettings of commercial properties have also witnessed improved levels of activity over the last six weeks.
Lettings of residential property in the region have remained as strong as ever throughout the last two years and with demand generally exceeding supply rent levels are also gradually improving.
Activity in the auction saleroom continues at ever increasing levels with more buyers and more vendors registering. Demand for collectables, memorabilia and anything of an individual nature has reached record levels partly as a result of the internet.
John Goodwin FRICS