The housing market continues to confound, if not confuse commentators and researchers. RICS published their monthly residential property survey this week noting “buyer demand grew at a more moderate pace during October… due to the ongoing shortage of new instructions coming to market, demand continues to outpace supply across most parts of the UK. In fact, the supply of new instructions coming to the market decreased for the ninth month in succession, instructions have only increased in one month since the middle of 2014.” and ” respondents foresee national house prices rising by just under 4.5% per annum, over the next five years (a cumulative increase of around 25%)” Read the full report here.
This is in marked contrast to the Deutsche Bank view that the London property market in particular can only go one way… down. There is an excellent balanced piece on the London market here that takes a rather more bullish view pulling together reports from Savills and Knight Frank as well as the RICS data which firmly makes the point that supply is the root of the problem, its unlikely to be relieved anytime soon and “it looks like falling prices is just wishful thinking for buyers. And just because you wish it, doesn’t mean it will come true”.
As Chartered Building Surveyors at the sharp end our instructions to carry out Building Surveys are directly linked to the health of the market so what do we see?
From our Hythe [Kent] survey office we can report that supply has been a problem for most of the year and continues to be so, this has led to strong increases in value fuelled by London property owners second homing here. Come along you’re welcome!
Whats not to like? Coastal location, High Speed rail link to St Pancras is under an hour, one of the original Cinque Ports and an historic, delightful little town. No wonder according to recent research the town is a property hot spot. A good two bed flat will be £250k and up but creep just a little out of town to the west end of Folkestone and a good size two bedroom flat in a purpose built block with sea views, 999 year lease and modest service charge can still be snapped up around £160,000.00. Rightmove Folkestone and Rightmove Hythe.
Our Chislehurst office remains busy and the lack of supply around our core areas of Bromley, Greenwich and Orpington and has not affected us too much but we have noted firming values and a worrying FOMO trend [Fear Of Missing Out] making unrealistic [stupid] offers on poor quality property. One client recently said to us they knew they were overpaying but were desperate to buy. Desperate enough in fact to offer £150,000.00 over the asking price of a £1m, 2 bedroom flat in Hackney. That makes no sense to us and surely can only end in tears!!
Buying a house in these locations? Need advice [call us, we don’t bite, know what we’re talking about and it’s free] or a survey? Contact us and get a survey or Homebuyer report quote