Tom comments on the key trends and influences in the property market.
Our core market, which we term as properties priced from £350,000 to £1 million, is performing well.
In the first quarter of this year sales were boosted by second home and buy-to-let investors who raced to beat the increased 3% Stamp Duty from 1st April. However throughout the first quarter there remained a strong core of buyers buying their own homes or principal residences and I have no doubt this will continue to support the market going forward.
The second home buyers and buy-to-let investors continue to purchase property, but they are factoring in the additional expense of purchase. Over time the additional 3% will become accepted and the impact will diminish. Currently strong negotiation from an experienced agent can negate the impact for the seller.
In fact I have seen renewed confidence from first time buyers trying to get on the property ladder. For the first time they now have an advantage over second home buyers and buy-to-let investors as they don’t have to pay the extra 3% Stamp Duty. This has to be a good thing for the Cotswolds and whole of the country moving forward.
Our market research shows an 11% reduction in available properties on the market in the first quarter of this year compared with last year. This should keep gentle upward pressure on prices throughout 2016 as we saw in 2015.
The referendum, like with the general election last year, may cause a few buyers to wait and see. However the majority of buyers tend not to put their lives on hold. They continue to upsize, downsize, and relocate when the time is right for them and their families. Don’t try to double guess the market and miss your dream home as in the long run may well regret it. This is, in my opinion, the most important thing to remember when you are moving.
For any questions on the market, selling or letting your property, please call Tom Hayman-Joyce or the team at Hayman-Joyce on 01608 491081.