Wed 29 Apr 2015
Apathy has hit the Plymouth housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand. This is mirrored around the UK as Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier.
Looking at Plymouth, in the late Summer of 2014, each estate agent in Plymouth had on average 47.25 properties on its books (as there were a total of 2,268 properties up for sale in Plymouth at the peak in the late Summer just gone). Our research shows that number plummeted to 39.4 per agent in December. While the lack of new properties coming onto the market in the later months of 2014 in Plymouth pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.
The length of time a property takes to sell has increased over the last few months. Two bedroom properties in Plymouth are now taking 88 days to sell, three bedroom 95 days, four bedrooms 102 days, but here is an interesting figure, one beds are taking on average 149 days to find a buyer
2015 will be the year of the selective mover. Since the turn of the millennium approximately 676 brand new properties have been built in Plymouth each year .This woefully low and insufficient number of new buildings combined with a systemic change in the type of properties homeowners want (for example when families separate this results in the market having too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.
It seems that the heat has gone out of the Plymouth property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014. This could give Plymouth landlords the opportunity to bag a bargain during this period of uncertainty, especially if the financial markets are unhappy with the outcome of the general election. Markets and buyers do not like uncertainty, but savvy Buy to Let landlords know that ‘buy to let’ is a long term game. Irrespective of short term apathy, the reduction in the quality and quantity of stock for homeowners to buy or the result of the election, if people don’t buy property they rent. Bearing it in mind that the Council aren’t building anymore properties, and the council house waiting list is decades long, not years, for the better type of property it appears that the only other way of getting a suitable place to live is to ..... RENT A PROPERTY! Good old Bricks and Mortar!
Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. Email me on email@example.com
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