Market Comment – July 2019

Gary 4x3Looking at July, whilst I appreciate that there are many uncertainties and in particular Brexit, it will come as no surprise that out of the negative reporting, I have found it easy to find the rays of sunshine amongst this negativity.

When you actually look at the housing market across the UK, certain commentators have used the expression ‘treading water’ with marginal increases or decreases month by month and this is due to buyer demand being up and a slight decrease in new stock coming to the market and everyone knows that any commodity whereby demand outstrips supply is a good indicator for the particular commodity.

I firmly believe that with 85 days to go, prospective purchasers are looking beyond Brexit, whether it be a first, second or third move. With mortgage affordability, low-interest rates and healthy wage increases, this will undoubtedly underpin this positive situation.

Turning to our own figures across the group, new prospective applicants both on the buying and rental sectors were virtually the same as June and after meeting prospective managers in each of the areas with operate in and departments there has been no hint of lacklustre.

We are still in a situation whereby there are 7 to 8 tenants for every property and all of our sales negotiators are managing the same number of prospective purchasers as they were 5 years ago, so whilst I am known for being positive and looking for the ray of sunshine on the darkest day, I am pleased to report throughout our group, it is business as usual.

New Homes enquiries increased in July and we were pleased to complete 100% the development of 1 and 2 bedroom houses at Fawcett Road, Central Croydon and we are marketing 7 new developments in August and September and our new homes team has been gearing up for prospective launches on these fronts.

I am personally looking forward to August and I have every confidence I will be reporting back to you in early September to say that August 2019 was a stable and solid front both in residential lettings and sales.