Cotswold Property Market Update November 2020
We are in a positive and active market; we have agreed three times as many sales as we normally do at this time of year. I have identified the four key factors which have created this.
Firstly, we no longer have Brexit top of the agenda and with a majority government, we are moving forward. The uncertainty in the market since 2016 is behind us and this meant a positive start to the 2020 market.
Secondly, the lockdown made everyone stop and reassess their lives. Is our home too large or too small, do we need to be closer to family? It gave us all a moment to stop, reflect and plan, many opting to make a move.
Thirdly, the much talked about migration out of the cities to the country. We identified this trend in 2015 when broadband was upgraded across most of the Cotswolds, this trend has significantly accelerated. Driven further by the change in employers’ attitude towards it, with many actively encouraging their teams to work from home.
Finally, the Stamp Duty holiday for sales which complete before 31st March 2021. This has encouraged more people to sell, increasing supply and going some way to balance the increased demand.
In summary, this has created a market with confidence, we have seen price increases in the region of 5% in the second half of the year and 75% more buyers in the market place from London.
Our letting team has seen a reducing supply of property, prompted by the better sales market and the burden on private landlords of increasing legislation – 2018 Minimum Energy Efficiency Standard Regulations, 2019 Tenant Fee Act and 2020 Electrical Safety Standards Regulations, make it more costly to be a private landlord. However, with many who are looking to move out of the cities, wanting to rent first, before they commit to buy, demand is up. This has led to significant increase in rents, which in turn is attracting more private landlords back into the market, who will benefit from better yields and relatively stable long-term capital growth.
To discuss the market or for any property related matter please contact Tom Hayman-Joyce 01608 651188, firstname.lastname@example.org or @cotswoldagent