Brexit and the southwest property market

Whilst the political climate surrounding the Brexit negotiations has undoubtedly caused many participants in the market to pause, this effect is probably evenly divided between buyers and sellers, meaning that prices are remaining relatively stable

The main casualty is transaction numbers: properties which are not new in the first half of 2018 in the prime market (above £500k) in the whole of the three counties of Cornwall, Devon and Somerset are down 6% from the previous year and in rural areas will be down significantly more.

Beyond (we hope!) the short term effects of the Brexit negotiations, what is becoming increasingly apparent is a polarisation within the market. It is no longer appropriate to comment upon general movement in property prices and transaction levels without breaking that down into smaller geographic, price band and property type constituent parts. There is a long term trend for an increase in demand and popularity for newer and conveniently located properties.

For example, the number of sales of prime new houses in the three counties has risen by 20% over the last year against the backdrop of a fall in numbers of second hand sales. Prices in urban, coastal locations and well connected villages have moved forward in the last year, whilst prices for more rural property have remained static. There is also evidence that transaction levels at lower price levels are greatest and this is probably a reflection of the effect of the now significant levels of SDLT (Stamp Duty) at higher price levels and for second homes.

All of this background of the dynamics of different markets means it has never been more important to address sales of property professionally and in a way which maximises the opportunities for finding and then securing the best buyers in the market. We currently have many properties for sale and would be delighted to help you with your plans for a move later this year or in 2019.

Richard Addington
Jackson-Stops Exeter
01392 214222