Market Comment – May 2016

Gary-4x3April has in some respects defied all the pundits and that has certainly been the case in the areas that we operate in.

Some industry commentators had suggested from the 1st April that Buy to Let landlords and people buying second homes would have to pay 3% stamp duty and in the areas that we operate in that would inevitably be 5% or 8% of the purchase price for a second home or buy to let purchase. Some thought that this would be a reason for the market to call off in April.

From Crystal Palace to Coulsdon, this has not been our experience and I think the reason is that demand still outstrips supply and investors that couldn’t take advantage of the March 31st deadline are taking into consideration the bigger picture and what a fantastic opportunity that Croydon still is.

Interestingly prospective purchaser registrations were up 3% across our group than the previous month and our new, new homes purchases are up 7% on March and 18% on the same month last year so there is no evidence that things are cooling off.

Having spoken to our new homes and land/development managers, enquiries for both purchase and selling of land and development opportunities have also been unusually high in April so there is definitely sustained and improved activity in our housing market.

Our residential letting market once again in April has remained steady and solid with rents going up by 2% on the same month in 2015 and new registrations up 5% on the same month in 2015. There are still 8 tenants for every property and I have every reason to believe that this situation will remain the same for the rest of the year.

I am delighted that reservations are already being made for our investors evening on June 2nd and I am looking forward to property commentator Kate Faulkner talking to us on a variety of property and investment topics.

Traditionally May is a really busy month in the housing market with light mornings and light evenings and hopefully better weather all round. People are encouraged to go out and view.

I think that the next few months leading into the summer are going to be exciting times ahead as Croydon and our other offices remain firmly the areas of opportunity.

I look forward to reporting to you at the beginning of June on May’s figures.