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COUNTRY MARKET COMMENT |
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Above: Essex, £3.5 million
guide
Top left: Cheshire, POA
Above far left: Oxford, £725,000 guide
Above left: East Sussex, £675,000 guide |
Demand led
Contrary to the understandable
impression gained by those looking to buy, Jackson-Stops &
Staff has not experienced a lack of supply, simply a remarkable
increase in demand. It is this that has created shortages of
stock – and rising prices – across the country.
Looking
back over the last year, Jackson-Stops & Staff as
a whole has seen a small increase (3%) in the number of
properties brought to market. In contrast, the number
of sales achieved has grown by no less than 32%. The inevitable
result is that, at any one time, we have had much less
stock available. This in turn has generated higher prices,
though, at a national average of 9% year-on-year, perhaps
not as great as some believe. Nevertheless, the overall
picture, being one of confident demand and stability,
is very different from the dour predictions of many, a
year or so ago. The greatest shortages of stock and largest
price increases have been seen in and around London. Having
seen lower capital growth than other parts of the country
for several years, this was to be expected (and, indeed,
was explicitly predicted by us in this publication). Outside
the south east, however, regional distinctions have been
remarkable by their absence. It is possible that this
is a result of improved communications across the country,
more broadly spread economic activity and more flexible
ways of working, especially for senior executives. Whatever
the reasons, the days of the country house market being
terrifically strong in, say, Cornwall, but weak in, say,
Northumberland, appear to be a thing of the past (though
this is probably not true at more mainstream market levels).
Perhaps the most notable common feature across the regions
of late has been the interplay between a general caution
amongst buyers keen not to over-pay, and ferocious competition
for those country houses which appear to ‘have it
all’. It is this that has given rise to the occasional
startlingly high price that attracts much attention and
raises general expectations. In truth, most properties
cannot fall into such a prime category and so, properly
marketed, will fetch a good, but not ‘startling’
price.
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Part of our role
as agents, of course, is to make it clear to buyers that
your property does indeed fall into the ‘has it all’
category and is well worth fighting for! When buyers do
identify such a house, another striking feature of the
current market – and this is, again, as true in,
say, Chelmsford as it is in Chester – is the priority
they will give to going to see it. A £1.25 million
house recently offered by our Barnstaple office, for example,
attracted 15 viewings from ‘ready to go’ buyers
in just six days, producing four offers, three at above
the guide price. This is not, it should be stressed, typical
of every house marketed, but it is far from unusual. Similar
instances are occurring, for all of our offices, on a
regular basis.
Below: Cornwall, £750,000
guide
Norfolk, £850,000 guide
So what of the months ahead? For seasonal reasons the
shortage of supply, relative to demand, will ease as we
approach the height of summer and this will help to take
some of the current stress (and price pressure) out of
the market. Compulsory Home Information Packs, too, could
cause a boost in supply ahead of their introduction in
June, a point considered elsewhere in this publication.
Meanwhile, the impact of recent interest rate rises, whilst
they have not greatly affected affordability, is likely
to ‘feed through’, tempering demand to some
extent at least. Against that, continuing strong economic
activity and, especially, strong salary growth amongst
senior executives, will ensure that both general confidence
and a healthy demand, remain in place. Thus our expectations
are for the continuation of a strong market, with an improved
balance of supply and demand and, consequently, less volatile,
if still overwhelmingly positive, conditions.
Above left from the top:
Devon, £1.45 million guide
Berkshire, £1.65 million guide
Gloucestershire, £1.1 million guide
Below: Cheshire, £2.5 million
guide |
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