Wednesday, 17 September 2014

Goodbye holiday, hello Autumn!

As much as we all love and need our holidays it is always a relief for estate agents when the second week of September arrives and our buyers are back home, refreshed and, generally, raring to go – giving us a good two months to make it all happen before Christmas.

This year, however, we will be even more delighted when the outcome of this week’s momentous Scottish Independence Referendum is finally revealed. No market likes uncertainty and it has been interesting to see the impact of Scotland’s potential break-away from the UK on the property market.

Whatever the outcome is, the fact we will have a result will help in a way that endless speculation hasn’t.

This has been specifically noticeable amongst London buyers. With many of our London buyers working in the City, the financial markets’ trepidation has rippled out into ours. This, therefore, has contributed to a slackening in demand for larger family houses in the £1,000,000 plus price bracket.

With any luck, Scotland will decide to stay in the fold and we can all raise a whisky or two to a revival of confidence.

On the other hand, a sector of the market which has shown tartan-resistant strength is the retirement bracket. The demand for good village houses within walking distance of amenities, together with spacious reception rooms, a reasonable sized garden and off road parking/garaging is especially strong.

As 2014 took off with the wind fully in its sails, we confidently expected the year to continue as such. Mark Carney’s warning of impending interest rate rises certainly contributed to deflating the London market ‘bubble’. However, frustratingly, this took the puff out of the country bubble which had only just started to inflate and was a long, long way off bursting.

However, the consensus is that when the base rate does rise, it will be in incremental stages. Such baby-steps will not only be easier for householders to plan-for and manage but are also unlikely to spook the financial and residential property markets.

Looking at this positively, a gentle pulling-in of the reins should ensure a more contained, steady and long lasting growth.

Caroline Edwards
Residential Sales, Long Melford

T: 01787 888622

No comments: