Monday 8 December 2014

An Estate Agent’s Christmas Carol


Nick Churton from our Mayfair Group global network takes a humorous look at a traditional tale as Christmas approaches - with apologies to Charles Dickens! 

Scrooge had been trying to sell his house all year - but to no effect. He was fed up with cold winters and longed to move to Spain where he had found a flat at a knockdown price being sold by a desperate developer. Now it was Christmas again and there was still no sign of a buyer for his own house. Scrooge hated Christmas.

Bob, at the local estate agent, Cratchit and Co, had almost given up on ever selling the house. Scrooge was far too mean to put the lights on inside or light the fire to make the house look cosy and inviting. Instead it was unwelcoming and cold.  A better word would be frigid. 

He refused to let people see the house when they wanted to and only allowed viewings when it was convenient for him. The few offers he had received he had treated with derision - even though the asking price was really far too high - which put everyone off taking it any further. Scrooge was even insisting that any buyer would have to purchase, at extra cost, the threadbare carpets and even some wet logs at the end of the garden which he described as firewood.

That night Scrooge had three disturbing dreams. The first vividly showed him what life had been like before he had become so mean and his wife had left him. The second dream showed Christmas dinner at his estate agent's house. It was a jovial family affair with Bob, his wife and their small son, Tim, all enjoying themselves. But slowly the scene changed to show what life would be like if Bob couldn't sell any houses and had no money. The third dream showed Scrooge's grave. He had died an embittered old man who had never sold his mausoleum of a house or moved to sunny Spain.

Waking up in his bed Scrooge realised that wasn't too late. He raced round the house putting lights on and setting the fire ablaze in the living room. He then rushed down to see Bob at Cratchit & Co, and told him to reduce the price immediately and to tell everyone that he would heartily entertain any reasonable offers. Scrooge even told Bob that he would increase the commission if the house was sold quickly.

So Scrooge did sell his house and moved to Spain where he enjoyed many long years in the sun. He even met an attractive widow in the local tapas bar that he went to often. Scrooge never forgot to send Bob a Christmas card, as without all Bob's hard work he would never have had his new life.

The moral of this story is to be as accommodating with potential buyers as possible and always try and find a estate agent like Bob. Christies Estate Agents in Cheam is just such a firm as Cratchit & Co. Call us - we might change your life.

Happy Christmas everyone.
Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Friday 5 December 2014

A Slab of Christmas Cake

Nick Churton from our Mayfair Group global network takes a look at the agreeable change in stamp duty brought about in the Autumn Statement.

Few people like taxation. Most understand that we have to have taxes. But when they are as unfair as our stamp duty was then taxation seems to be doubly disagreeable. 

In his Autumn Statement the Chancellor, George Osbourne, at a stroke righted many wrongs concerning stamp duty - and perhaps put a serious dent in the opposition's mansion tax plans at the same time.

This is too late for millions of buyers under the old system, but a wonderful Christmas present for thousands who are in the process of buying a property at the moment.  And it is a massive windfall for buyers next year and beyond.  A huge 98 per cent of home buyers will benefit from the Chancellor doing away with the slab system, where buyers would be charged the allotted percentage on the whole purchase price even if it was only £1 over the various thresholds. Now buyers will only be charged tax on a slice of the purchase price.

So great news for the many.  But not such good news for the few.  Those buying at higher levels - over £925,000 - will pay more for the privilege.

The old stamp duty was a bad tax - or rather it increasingly became a bad tax.  As property prices rose more and more people were dragged into the net.  Buying a home is expensive enough without the government of the day cashing in on what was seen to be a purely opportunistic raid on people's pockets. Good riddance to it.

What will the knock-on effect be - apart from home buyers having more money to help with a deposit or all those extra expenses connected to property purchase?  The new stamp duty rates will not raise the same concerns pundits and commentators had over Labour's proposed mansion tax which would have hit owners of expensive homes every year.  That really was threatening the value of their houses.  The new stamp duty does not seem so reckless in this respect. Nor will there have to be a mass re-evaluation of property for tax purposes.

At the lower end of the market it could add fresh impetus to what is generally seen as a cooling market. But any forecast in this respect should also take into account the negative effect any future interest rate increases may have on the market.

So good news for the market below £1,000,000 and even those in the upper sector should feel pleased that the threat of a mansion tax is perhaps a step further away now than it was on Wednesday.
Please contact us on 020 8643 7777 or email at sales@christiesworld.com

The Market Rocks

Nick Churton from our Mayfair Group global network takes a look at the property year and considers what may have a positive or negative effect next year.


As 2014 draws to a close and we look forward to the New Year there is much to think about in the property market. In most regions it has been a generally good year overall with a fine start but a quieter finish.  Price gains have slowed considerably and the heat has certainly come out of the market. There is not the frenzied buying now that there was this time last year. Even central London has cooled off.

Each year we seem to experience events that rock the housing market to greater or lesser extents. This year the heavy rains that flooded the Somerset Levels at the end of last winter had a marked effect on that region. The highly successful Commonwealth Games in Glasgow during the summer caused a small lull as attention was drawn elsewhere for a couple of weeks. And, staying with the Scottish theme, it was the Scottish referendum that had the single greatest effect on the market across the entire United Kingdom, as both buyers and sellers all seemed to hold their collective breaths for a month or more before the vote.

In the end it was all right and soon the property market was back to normal. But these events only serve to highlight how susceptible the market is right now to both local and national events.

No doubt the future will have a few surprises for us in 2015 also – in addition to those events we already know will affect the market such as the general election. This election more than anything else, short of a national or international disaster, will define the property market next year. Our minds will be on the ramifications of any new ruling party or coalition.  The move to greater devolution and regional control has yet to make itself felt. So too have big infrastructure projects like rail links and new roads which can have such an effect on local property prices.

But we estate agents are also eagerly awaiting the arrival of a new property website late in January.  We think it will completely change for the better the way people search for houses. It is called OnTheMarket.  Look out for it. We are going to tell you more about this next year.

Meanwhile all of us at Christies wish you a happy Christmas and a far from rocky New Year.
Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Wednesday 3 December 2014

Market Review December 2014 - Christies House Price Index - Local property prices have risen 15% this year

The latest Christies House Price Index, uses the most up to date reliable data from the Land Registry, and also confirms that property in the local area continues to represent an outstanding investment.

Local property prices have risen 15% so far this year. Medium and long term gains are even more exceptional. Based on past performance potential buyers will be very encouraged to see that prices have risen by 38% over the previous five years, by the same amount over the previous ten years and by an astonishing 165% over the previous 15 years.

What is perhaps even more impressive is that prices are now 15% higher than at the previous peak of the market in early 2008.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for November onwards are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.


Date..............Average Price.........Average Price Oct 2014.......YEARS............INCREASE 

Oct-99..............£117,772.........................£312,154.....................15....................165%


Oct-04..............£225,654.........................£312,154.....................10.....................38%

Oct-09..............£226,987.........................£312,154......................5......................38%

Over the years, and particularly in recent times, demand for properties in Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood, Tadworth and surrounding towns and villages has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood and Tadworth all enjoy flourishing local communities with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets.

Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment. Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices, but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Thursday 13 November 2014

Market Review October 2014 - Christies House Price Index - Local property prices have risen 14% this year

The latest Christies House Price Index, uses the most up to date reliable data from the Land Registry, and also confirms that property in the local area continues to represent an outstanding investment.

Local property prices have risen 14% so far this year. Medium and long term gains are even more exceptional. 

Based on past performance potential buyers will be very encouraged to see that prices have risen by 38% over the previous five years, by the same amount over the previous ten years and by an astonishing 168% over the previous 15 years. What is perhaps even more impressive is that prices are now 14% higher than at the previous peak of the market in early 2008. 

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for October onwards are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.


Date

Average Price

Average Price  Sept 2014

Years

Increase

Sep-99

£115,421

£309,524

15

168%

Sep-04

£224,003

£309,524

10

38%

Sep-09

£224,684

£309,524

5

38%

Over the years, and particularly in recent times, demand for properties in Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood, Tadworth and surrounding towns and villages has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood and Tadworth all enjoy flourishing local communities with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets.

Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment. Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices, but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact us on 020 8643 7777 or email at sales@christiesworld.com


Wednesday 5 November 2014

Principally Speaking



Nick Churton from our Mayfair Group global network offers some words of advice to those selling property over the coming months.

Standing on principle can be an expensive position to adopt when buying and selling property. In a level or falling market hanging out for a high price because - in one's own view - it is worth it can often backfire, because a property which is too highly priced can look out of step with the rest of the market. Can sellers really know what their properties will fetch? Surely they are worth what others will pay for them.

Property purchase and sale is seldom an end in itself. It usually forms part of a life-changing event such as gaining independence, committing to a partner, starting a family or reaching retirement. These events are bigger than any property in the scheme of things. So standing on principle can sometimes stand in the way of moving on.

We have just had two fairly good years of rising prices. We have got used to this. But all good things come to an end - until the next time.

Despite the lowest interest rates and some of the best mortgage deals in living memory the property market is showing signs of cooling. Some prices set in the spirit of acceptable optimism earlier in the year are beginning to look decidedly over-inflated now. And, as any skilled negotiator will tell you, one should always open realistically.

A general election is on its way, the European economy again looks worrisome and Christmas is round the corner.  If you have any big personal or family events which involve property purchase or sale now is the time to be reasonable about your expectations. Listen to buyers, listen to the market and listen to your experienced estate agent. Listen to your heart - and not your wallet. Wallets make poor property 
advisors. Good estate agents make better ones.


Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Wednesday 1 October 2014

Crying Wolf

Nick Churton from our Mayfair Group global network assesses the autumn property market and the aftermath of the Scottish referendum

Estate agents are always urging people to sell their houses for one reason or another. Well they would, wouldn’t they? Selling houses is what they do. But sometimes it really, really is better to sell sooner rather than later - and that time might well be now.

No market likes uncertainty. The people at Tesco will tell you that. And we seem to be entering a far more uncertain and delicately poised property market. The Scottish referendum highlighted this. In the last month or so of the campaign – and especially in the last few weeks - the English and Welsh property markets slowed noticeably. If a vote in Scotland can do this just think what a general election across the entire UK will do. Our next election is seven months away.

Now the rumblings of a Mansion Tax are getting louder with the Labour party seemingly making this an election pledge. Quite what this will do to the higher end of the property market is uncertain. But it is not hard to imagine that it could put some downward pressure on this sector. Will this in turn also have a knock-on effect in the middle-market?

Added to this pressure is the increasing number of people in the middle to upper end of the market who are downsizing - either to relocate to somewhere smaller and more manageable or to release capital for deposit-strapped offspring or even grand-offspring.

So to all those who may be waiting until next year before going to the market - or those on the market now who imagine they are not in a hurry to sell – you may all be in more of a hurry than you think. Despite some estate agents crying wolf once too often, this time the house really could be alight.


Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Friday 5 September 2014

Christies House Price Index - Local property prices have risen 9% this year

The latest Christies House Price Index, uses the most up to date reliable data from the Land Registry, and also confirms that property in the local area continues to represent an outstanding investment.

Local property prices have risen 9% this year. Medium and long term gains are even more exceptional. Based on past performance potential buyers will be very encouraged to see that prices have risen by 36% over the previous ten years and by an astonishing 165% over the previous 15 years.

What is perhaps even more impressive is that prices are now 35% higher than they were five years ago and are now 10% higher than at the previous peak of the market in 2008.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for August onwards are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date..............Average Price.........Average Price July 2014.......YEARS............INCREASE 

Jul-99..............£110,142.........................£296,612.........................15.....................165%

Jul-04..............£216,795.........................£296,612.........................10......................36%

Jul-09..............£218,537.........................£296,612..........................5.......................35%

Over the years, and particularly in recent times, demand for properties in Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood, Tadworth and surrounding towns and villages has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood and Tadworth all enjoy flourishing local communities with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices, but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Back to School

Nick Churton from our Mayfair Group global network suggests some suitable prep before entering the property market this autumn.

One of the great triggers in the property year is the beginning of the autumn school term. Once the children are back to school there is more time for house hunting and just enough time to be in a new home by Christmas.

But just as the children are learning new things there are new things to be learnt in buying and selling property. Even to those who have bought and sold several times before, this is a new market. The property market is always in flux.  Even experienced estate agents won’t say they have seen it all before. But they have seen more than anyone else.

So here are some lessons that you might like to bear in mind if you are coming into the market this autumn.

The media hype in newspapers and on the TV and radio about a buying frenzy across the UK is far from reality. Certainly there are hotspots like central London and certain towns and cities where the market has surged ahead. But that doesn’t mean it is surging everywhere. In many locations values haven’t reached their pre-2007 levels. The market still remains a price sensitive one.

In fact many agents now think that the heat is coming out of the market even in the hotspot areas as buyers are beginning to resist what they believe are overblown prices.

Confidence is a crucial factor in the property market, and while confidence in the economy is better now than it has been for many years there are factors that do have an opposing effect. The mortgage lenders are working on stricter lending criteria. At the upper end of the market there is uncertainty and fear about a mansion tax being levied in the future. In Scotland many are waiting the result of the referendum that will be held on 18th September. In the rest of the UK it won’t be very long before we are at the business end of a general election campaign with all the uncertainty that brings.

So some things about the market never remain the same. But some do. Buyers always like to purchase well and sellers always like to sell well – a recipe for conflict. So the big lesson for anyone entering the property market this autumn is compromise. With compromise come deals. Without compromise there is little but frustration and no move before Christmas.


So talk to those who have seen a great deal before. Take advice from mature and experienced estate agents. They are not there to take advantage of you – despite what the media likes to say. They are there to get the best deal for you. Don’t demand too much or accept too little. Be flexible. Understand the market conditions which apply today and not in the past – nor what you hope they may be in the future. And there the lesson ends.

Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Thursday 7 August 2014

Passing the Baton


Nick Churton from our Mayfair Group global network looks beyond the Commonwealth Games to a slower paced event where the losers could be left without a home.

The Commonwealth Games has been a spectacular success of which Glasgow and Scotland can be proud. 


All the events have been exciting to watch - but perhaps none more so than the relays on the track, in the pool and in the triathlon. 

We all love a good relay. Yet some people may not have noticed another long-running event held over recent years in that other great sporting arena – Westminster. This is the minister for housing relay.

The government has just announced its fourth minister for housing since the start of this parliament four years ago. The Labour government before it had nine ministers in charge of this portfolio during its thirteen-year term. In a country that is crying out for some sort of cohesive housing policy – an area of government which, like health, education and the economy, needs long, long term goals and strategy - these statistics are a very poor indictment.

Thirteen housing ministers in seventeen years: one could be forgiven for questioning the deep commitment to housing policy from both sides of the House. In this relay both Labour and Conservatives have been passing the baton every fifteen to sixteen months on average. That’s hardly time for each runner to get up to speed, never mind time to create a sensible, sustainable, and socially, morally and environmentally acceptable legacy for future generations.

Anyone who has passed or taken a relay baton at full tilt will know how difficult it is to do well. Sadly the recent housing ministers all seem to have been travelling at walking pace at the changeover. So it’s not even the case that we are able to enjoy the action. There is no real action going on. But we would like to think that something is being done to provide enough modern and efficient homes for a modern and efficient society, and that the country can be saved from lurching from housing boom to bust. 

We also need reassurance that the failure of successive governments to implement meaningful long-term housing policies over the past four decades will not mean that low-paid workers and those who provide our vital social services struggle to even save up for a deposit, never mind qualify for a mortgage.

Let’s hope that whoever is in charge after the next general election will select a minister for housing who is good enough to hold on to his or her baton long enough to help make Britain be a place where everyone can find and afford a place.


Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Saturday 2 August 2014

Christies House Price Index - Local property prices now 7% above previous 2008 peak

The latest Christies House Price Index, uses the most up to date reliable data from the Land Registry, and also confirms that property in the local area continues to represent an outstanding investment.

Medium and long term gains are still exceptional. Based on past performance potential buyers will be very encouraged to see that prices have risen by 34% over the previous ten years and by an astonishing 164% over the previous 15 years.

What is perhaps even more impressive is that prices are now 33% higher than they were five years ago and are now more than 7% higher than at the previous peak of the market in March 2008.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for June onwards are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date..............Average Price.........Average Price June 2014.......YEARS............INCREASE

Jun-99..............£110,142..........................£290,958.........................15.....................164%

Jun-04..............£216,795..........................£290,958.........................10.......................34%

Jun-09..............£218,537..........................£290,958..........................5........................33%

Over the years, and particularly in recent times, demand for properties in Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood, Tadworth and surrounding towns and villages has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood and Tadworth all enjoy flourishing local communities with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices, but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Thursday 3 July 2014

Christies House Price Index - prices now 5% above previous 2008 peak

The latest Christies House Price Index, uses the most up to date reliable data from the Land Registry, and also confirms that property in the local area continues to represent an outstanding investment.

Medium and long term gains are still exceptional. Based on past performance potential buyers will be very encouraged to see that prices have risen by 31% over the previous ten years and by an astonishing 161% over the previous 15 years.

What is perhaps even more impressive is that prices are now 30% higher than they were five years ago and are now more than 5% higher than at the previous peak of the market in March 2008.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for June onwards are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date..............Average Price.........Average Price May 2014.......YEARS............INCREASE

May-99............£108,826..........................£283,984..............................15.......................161%

May-04............£215,973..........................£283,984..............................10........................31%

May-09............£218,920..........................£283,984...............................5.........................30%

Over the years, and particularly in recent times, demand for properties in Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood, Tadworth and surrounding towns and villages has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam, Sutton, Carshalton, Worcester Park, Ewell, Epsom, Banstead, Chipstead, Kingswood and Tadworth all enjoy flourishing local communities with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices, but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact us on 020 8643 7777 or email at sales@christiesworld.com

Mid-Term Report

As we enter the second half of 2014 Nick Churton of our Mayfair Group global network takes stock of the property market. 

We are midway through the property year and while the market seems to have steadied, once again property is clearly big news. The headlines in our press and often the lead items on television and radio news are the housing market and what it's doing or going to do. 

It is frustrating that so often journalists' comments refer to a market which does not really exist at all but rather is a homogenous mix of markets in the north, the south, the east and west - and that other country which is central London. In fact the property market is really made up of thousands of micro-markets. 

Also alarming statements about housing bubbles do not help much. Now the Chancellor, George Osborne, and Governor of the Bank of England, Mark Carney, have prepared measures designed to halt a headlong dive into another housing crisis. 

But the increasing feeling of those who handle the property market every day for a living – estate agents - is that things might have already steadied themselves. Harsher mortgage lending criteria - that have already slowed the numbers of loans; prices - for many - reaching the top of their affordability range, and the sated pool of pent-up first and second time buyer demand all add to a dampening effect.

Further up the market activity in higher price ranges can reflect uncertainty about future government taxation policies. This may grow as we approach the next general election. So these new Bank of England measures can be seen as a sensible precaution against future excesses rather than shutting the stable door after the horse has bolted. 

Yes, we need more housing with the release of more Brownfield sites. We need to relax some planning bureaucracy and foster responsible lending – and borrowing. A more enlightened approach to bringing life to our high streets through a greater residential element may help also. All this will assist us in steering away from more boom and bust. 

There will be new challenges such as interest rates gradually increasing in a sensitively controlled way. But there is no reason why a small mortgage rate increase will harm the market in the short or medium term. In general - and taking central London out of the equation - we believe that the second part of the year will be much the same as the first - a balanced market with some really great opportunities for both buyers and sellers.
Please contact us on 020 8643 7777 or email at sales@christiesworld.com