Harefield Gazette - - PROPERTY -

DE­SPITE re­cent neg­a­tive press on the hous­ing mar­ket knock­ing con­fi­dence, Lakin & Co is still see­ing a healthy level of sales en­quiries, par­tic­u­larly from first-time buy­ers and land­lord in­vestors look­ing to take ad­van­tage of slow­ing house price growth and record low mort­gage lend­ing.

The great­est po­ten­tial is pos­si­bly set to come from ris­ing de­mand in lower value mar­kets out­side Lon­don and the South East where trans­ac­tion vol­umes ap­pear to be hold­ing up for the time be­ing.The Lon­don hous­ing mar­ket is slow­ing down but was al­ready fac­ing tur­bu­lent times prior to the EU ref­er­en­dum. Brexit has inevitably com­pounded the chal­lenge in the cap­i­tal of high prices, low yields, un­af­ford­abil­ity, tax changes for in­vestors and a lack of value for money for over­seas buy­ers de­spite the weaker pound.

It is worth re­mem­ber­ing that re­gard­less of all of the spec­u­la­tion around the im­pact of Brexit the essen­tials of the hous­ing mar­ket have not changed.

Buy­ers have ac­cess to record low mort­gage rates and with the lat­est data show­ing sup­ply ris­ing faster than sales for the first time in the last three years point­ing to a slow­down in house price in­fla­tion, the im­bal­ance be­tween sup­ply and de­mand will fur­ther in­crease – al­low­ing for more of a ‘buy­ers’ mar­ket’.

It is also sig­nif­i­cant to re­mem­ber that de­mand for hous­ing has not sud­denly de­clined fol­low­ing the vote but the ques­tion is whether buy­ers are happy to con­tinue with new home pur­chases and if de­vel­op­ers ease off from build­ing new af­ford­able homes, will a short­age of sup­ply re­main an is­sue?

Land­lords are con­tin­u­ing to look to in­vest in the buy-to-let sec­tor to take ad­van­tage of the strong rental de­mand. De­mand for in­vest­ment prop­erty has con­tin­ued to grow steadily over the last few years and the dip in the buy-to­let mar­ket was ex­pected fol­low­ing re­cent stamp duty and tax re­lief changes.

Ac­cord­ing to the Coun­cil of Mort­gage Lenders this has al­ready been re­flected in lend­ing vol­umes over re­cent months which are down by 50% on a year ago.

How­ever, with the base rate re­duced fur­ther and lower prices, in­vestors and first-time buy­ers equally are likely to con­tinue to look to pur­chase homes and in­vest their sav­ings for a bet­ter re­turn which will con­tinue to af­fect the sup­ply of cer­tain types of prop­erty such as af­ford­able fam­ily homes.

Mort­gage lenders in­clud­ing Coven­try Build­ing So­ci­ety, San­tander, Bar­clays and Natwest im­me­di­ately passed on the re­cent base rate cut to their cus­tomers but tougher af­ford­abil­ity tests on new buy-to-let lend­ing could fur­ther im­pact de­mand from land­lord in­vestors.

Where mar­ket con­di­tions are chang­ing, it is im­por­tant your prop­erty is val­ued cor­rectly. Lakin & Co’s knowl­edge of the hous­ing mar­ket will en­sure whether you’re sell­ing or let­ting your prop­erty re­ceives the best at­ten­tion. So call 01895 544 555 for a free no-obli­ga­tion prop­erty ap­praisal and find out how they can help you.

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