The year ahead: a steady market as price increases come to some places
There are glimmers of hope for the Yorkshire property market this year, according to our forecasters who reveal their predictions for 2013
“The final six months of 2012 saw signs of recovery in the UK property market and this has also been the case in Calderdale, as the area benefits from strong demand from commuters using the M62 from Manchester to Leeds. I can see no reason why 2013 should not continue in the same vein with house sales increasing as a result of positive economic indicators, new house builders slowly returning to the market and real signs that we are finally emerging from this prolonged recession.
With realistic asking prices and sensible banks, 2013 promises to be a step in the right direction for perfectly located Calderdale, from where you can access Leeds, Manchester, Huddersfield and Bradford all in less than 45 minutes.” best we can hope for is a stability, which in many respects is quite helpful to buyers and sellers. It means we all know where we stand. As ever, fundamentals are vital and they are location, condition and pricing. Get one of those wrong and a property will hang around for months.
We will continue to see the growth of ‘generation rent’, the under 40s who now opt to rent instead of buy, at least for the time being. We will also see the emergence of more corporate and institutionallandlords. These new landlords are attracted by high levels of tenant demand and property occupancy. Yorkshire offers healthy rental yields even if capital growth is more muted. Regrettably, I don’t see transaction levels rising much in 2013. Few homeowners will move for the sake of it; leaving house sales stimulated by some downsizing or upsizing and the usual forced sales through deaths and divorce. Depresssing maybe, but I think we can look positively for some growth in 2014 and beyond. And even if most homeowners are staying put for now, let’s face it, Yorkshire is a great place to be.”
“I believe 2012 was the year that sellers and buyers acknowledged this market as being the new normal. It was also a year of acceptance that prices are not going to increase in the short term. The market in 2013 will have much the same feel. There will be some who run out of patience and decide it’s time to move on and others who are happy to sit tight. It has been noticeable over the course of 2012 that the number of prestige homes available across the region has continued to fall, a pattern which has been with us for some years. For the buyers this will prove frustrating but for sellers it should provide some encouragement that perhaps it’s a good time to sell.”
“Last year proved to be another year of highs and lows. Some properties have sold well amidst healthy competition, while others have taken longer to find the right buyer. Confidence remains fragile. However, despite this ongoing uncertainty, realistically priced and proactively marketed properties are still creating interest. In fact the RICS reported the largest rise in new buyer enquiries for three years as 2012 drew to a close.
In 2013, we anticipate a general improvement in market conditions, although this will not necessarily result in an increase in prices. Our advice for anyone who is considering moving at some point in the New Year is not to delay. Get on and take advantage of improving market conditions. There may well be positive pent up demand with more active buyers and fewer properties being offered for sale than later in the spring.”
“I anticipate 2013 will be a year of consolidation and this will reflect in the housing market across Yorkshire. I am hopeful that if the sense of realism continues, we could see a growth in sales during the forthcoming year. There is now widespread acceptance that times and values have moved on and people are realising there is no point in reflecting on what your house was worth in 2007.
I also expect the continual improvements to the region’s infrastructure, which will help underwrite confidence in the market. A total of 38 per cent of the buyers through Knight Frank years and it will be many years before we ever experience another property boom. At the moment, buyers are finding it extremely difficult to get credit and until that changes the market in Yorkshire and elsewhere will not alter.”
“What we are seeing now is the emergence of the elusive London buyer. The gap between London and North Yorkshire prices has more than doubled since 2008 and one or two have spotted the value to be had up here, both in York and in the country house market. But they are canny and will not pay over the odds. So don’t overprice is my advice.
York has held up very well and looks set to continue to do so this year.
The old favourites will prosper, particularly the Howardian and Hambleton Hills. Vicarages and Rectories are top sellers as are houses really well finished. If it’s prime it can still fly, but when a buyer can find even a tiny flaw, the house may stick.
Proper pricing will bring the best results. Why, oh why, do we all imagine that our house will buck the trend and make a fancy price when no one else’s does? The seller I visited in 2007 put her house up for sale at just over twice the figure I gave her and it’s still for sale. Now she’s had five years of misery, three different agents, and around six price reductions. Bless her. She is a lesson to them all.”
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