Market Comment – December 2018

Gary 4x3Firstly, I would like to wish everyone a very happy and prosperous new year and I trust everyone had a fantastic Christmas.

I was away over Christmas and the new year, which gave me much time to read the experts view on the property both in sales and lettings going forward in 2019.

After spending hours reading reports, by and large, the experts predict very little change in prices during 2019, and whilst from an investment point of view some may see this as negative, those who read my market comments will not be surprised to know that I have found a positive in this, in that stable prices may very well encourage more mobility and more new buyers to the market. Whilst I appreciate there is uncertainty both politically and most importantly economically regarding Brexit, a number of regions in the United Kingdom have seen increases in 2018, most noticeably with Wales increasing 4% and also the East Midlands seeing steady growth with prices increasing at 4%. It is true to say that inner London and the South East have borne the majority of any correction in the market but I do not see this as a negative.

On another positive note, help to buy goes from strength to strength and in all the areas we operate in we have fresh and exciting new developments coming to the market in the first quarter of 2019, to which some we are already in receipt of reservation enquiries.

Turning to the lettings market, I have reflected and looked at last years results and whilst I don’t anticipate there being any significant rent decreases, my prediction for 2019 is a solid and stable year and landlords still have the choice of between 5 and 6 tenants per property. I also noted that the number of tenants viewing significantly increased in 2018 with the average tenant viewing between 8 and 9 properties at the end of the year as opposed to 4 or 5 at the beginning.

As I mentioned at the beginning of this month’s market comment, although the pundits and experts reports were bordering on sombre, I have taken the positives from this report and I can see great opportunity ahead for buyers, sellers, landlords and tenants this year.

Once again, may I wish everyone a happy new year and I look forward to reporting to you in February.