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Jackson-Stops & Staff – Market Conditions – February 2008
Despite gloomy predictions from some quarters Jackson-Stops & Staff (JSS) remains positive for its upper end market sector. Undoubtedly fewer properties are coming to the market compared with the same period last year but there is still steady demand and this has maintained prices at a constant level.
JSS do not therefore envisage a dramatic collapse in the property market as predicted by some ‘pundits’, but rather a less frothy market with values in our sector holding steady or showing slight gains over the year.
Buyers of more expensive houses are driven by quality and location, coupled with sensible pricing rather than the prevailing interest rate, whilst some vendors of such properties are holding back from marketing their houses perhaps until they see good news in the press, thus creating a shortage of supply, which demand is starting to outstrip.
Early January has seen an influx of new potential buyers coming on to the Jackson-Stops & Staff database and via the website, which gives a good indication of continued activity for 2008 with potential buyers now viewing properties after the long holiday break. The general consensus from all the offices is that properties need to be realistically priced and vendors are beginning to adjust their expectations. This does not imply a fall in values but more a need for over optimistic sellers to heed sensible advice.
Market Comments by directors of Jackson-Stops & Staff – London and Country
James Wilson of the JSS Shaftesbury office (01747 850858) comments, ‘we anticipate a steady market, with prices remaining broadly level. A period of stability is exactly what the market needs. The consensus in our market is that values will remain level or appreciate about 3%. What may well decline is ‘transactional business’ (volume of deals); if supply of property decreases prices may actually go northwards!’
Tim Dansie of the JSS Ipswich office (01473 218218) agrees that the market is not in freefall and that there is very little property available, especially at the top end (excess £1m). Tim comments, ‘Due to the lack of availability and the demand that is still out there, we can see prices certainly remaining static, if not, in cases of real quality, increasing’.
Crispin Harris of the JSS Wilmslow office (01625 540340) comments,’ we have two or three people bidding against each other on properties that have been on the market for some time, and are only now finding a market place’.
Alastair Hancock of the JSS Sevenoaks office (01732 740600) comments, ‘Many of our buyers, whilst not wishing to ‘buy badly’ take a fairly mature view in respect of the purchase of the family home, which they will own for a period of 10 – 20 years and are carrying on regardless as long as the sellers are realistic when considering quality offers’. The general expectation is that there will be a larger divide between better quality stock and those properties with any form of negative factor.’
Michael Brandon of the JSS Chichester office (01243 786316) comments, ‘in early January we had a very high influx of new potential buyers coming on to our database and through the website which gives a good indication of continued activity for 2008 with potential buyers now viewing properties again. A number of agreed transactions did falter but in most cases were re-negotiated to take account of the current market conditions. Values in West Sussex and East Hampshire are falling by about 0.5% per month at the moment in the £300-800,000 range and are very variable at over £1m some properties showing no change and others falling modestly in value’.
Andrew Ferrier of the JSS Midhurst office (01730 812357) comments, ‘at JSS Midhurst, where we sell high quality West Sussex properties, there has indeed been a change in market conditions since the Northern Rock debacle in September, but there is still a heavy demand for good quality properties in good locations’.
Dawn Carritt of the JSS London Country office (020 7664 6646) comments, ‘the whole market, London and country, seems to have reacted at the same time, which is very unusual as London usually leads the way in residential trends eventually filtering out to the provinces. The real difference has taken place in the sector of the market where a significant portion of the purchase money comes from borrowings. The increase in interest rates and the well publicised “credit crunch” has had an impact on the smaller/lower value houses and flats.
David Parris, JSS Operations Director of the London offices (020 8943 9777) comments, ‘The biggest difficulty facing the London market this year is the level of transacted business. The London offices of JSS expect volumes of sales to fall but prices to remain at their current levels in the absence of any further extraordinary factors. The market in the last quarter of 2007 faced quite a number of negative influences, not least the impact of the credit crisis leading to greater credit control on lending, Home Information Packs and the potential effects on buy-to-let of a change to the capital gains tax’.
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