Wed 05 Oct 2016
In the 3 months post Referendum agents have overseen 134 property price reductions in PE19. This figure is up 36% from the 3 months leading up to the Brexit vote, and highlights a downturn in the number of active buyers looking for property locally. This has been accentuated among the top end of the market, with 4+ bed homes.
There does however still remain confidence in the market as we have also witnessed a significant increase in new properties coming onto the market in PE19 - up by 22% for the same 3 month time periods.
The average price of properties coming to market nationally in the last month has also risen by 0.7% (+£2,277). This is a partial rebound from the fall of 2.0% (-£6,249) seen over the two previous months (Source: Rightmove).
These trends are pointing towards a recovery from the uncertainty we witnessed leading up to the EU referendum and subsequent dip in the market immediately following. Anecdotally, this trend is being echoed in our local areas too.
Nationally we have seen an increase on the supply of properties to let, up 8% on Q2 last year. Greater choice for tenants has however failed to slow rental prices, especially in London and the South East. In our region, we have seen the biggest year-on-year growth of all, with a 5% change.
Rightmove’s Head of Lettings Sam Mitchell states:
“The big spike in March transactions resulting from a large number of investors beating the more punitive stamp duty tax deadline has created a rental supply boost which is good news for prospective tenants actively looking for a new place to live. Now that the stamp duty changes have come in this boost may be short-lived, as landlords consider whether or not to make further purchases. Our own research among landlords shows that just under a third of them are concerned that the stamp duty changes, plus the forthcoming tax relief changes, will potentially wipe out their profits. Once the tax relief changes start to be phased in from next year new buy-to-let activity could slow further. However rental demand is still outstripping supply in many areas of the country so we may see a shift by investors to look in areas that offer better yields for long-term property investments.”
Demand measured by email and phone enquiries for rental properties from prospective tenants to agents on Rightmove was up by 2% this quarter compared to Q2 in 2015, and up 1% year-on-year in the two weeks immediately following the referendum result. At Lovett’s, we have experienced a slightly quieter few months over summer than compared to last year – however the lettings market remains extremely buoyant across all property sizes and categories.
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