Market Comment – May 2017
May has been a busy month, despite some large market disruptions, such as the half term holiday in the last week of the month, and the build up to the general election this week.
Normally, we would expect to see a slowdown in activity in the weeks leading up to a general election, and this has not happened here, and speaking to colleagues across the county seems to be a common observation. To put it into perspective; May 2017 compared to May 2016 has seen valuations carried out by our firm increase by 29%, and the number of offers from potential buyers increase by 27%.
At ground level; we have seen a significant change in dynamic as the top end of the market has performed really well. Medlake Farm at Hittisleigh for example has generated a lot of interest from both local and national buyers. Currently on the market with a guide price of £880,000 the historic farm house and courtyard of barns is completely surrounded by its own land which amounts to about 14 acres and is in an idyllic location.
The White House at Kenn is on the market at £725,000 and received offers within 24 hours of coming to market, and the White Cottage in Newcombes Meadow continues to captivate buyers interest. On the market at £495,000 the four-bedroom period cottage has just been re-thatched and benefited from external decoration and will make a stunning family home.
Whilst the top end of the market is performing really well, we are still finding that sales results across the board are healthy, so long as properties are realistically priced.
On the rental side of the business, momentum has decreased a little since the General Election was called. I would point out that a lack of supply is partly to blame for this, and I believe that this is due to the increase in Stamp Duty which has put some investors off entering the lettings market.
Tenant activity is still high in terms of viewings, in fact, very similar to last year, but new tenancies arranged have decreased slightly; bear in mind though May 2016 was particularly busy with a great supply of new properties coming to market which had been snapped up by investors buying before the stamp duty increase. We saw this kick off in May as Landlords had to complete on their purchase by 31st March, and then tenants had to give a months’ notice, so it really was a busy month!
The news of potential tenant fee bans is also going to cause some more conservative tenants to hold off making a decision about moving until facts are clearer and I believe this will also contribute to the slight ebb of tenancies we are experiencing.
As always, if you have any questions on the markets, or want any property related advice; do please contact us here at the office, we would love to hear from you.