- Tue 28 Jan 2020
We now have a much clearer idea of what the political landscape will look like going forward, with a government that has a majority looking to make things happen. How this will look, will become even clearer once the proposed budget in March is presented. The government is keen to fuel the economy, so what surprises, if any, will dictate how the market will fair this year.
I think most clients I see, and many business people I meet who are connected with the property market, are in agreement, that the current stamp duty arrangements are holding back the market. In particular those properties over £925,000. But whether the chancellor is brave enough to adjust the current arrangements remains to be seen.
From my prospective I can see a lot more clients returning to the market, as properties valued over £1million will slowly return and receive more interest that results in a successful sale. This marketplace solely relies on two factors. The first is confidence in the economy and the second is growth in the markets, particularly the markets in London and the South East and some of the stronger areas in the Midlands. These buyers, either retiring or downsizing, rely on strong house price growth which I believe will return in the Spring almost right across the country and in turn across the West Country.
Our 10 Cornwall offices faired very well last year, with many offices recording a high number of second home buyers looking to come away from the more traditional buy to let market and try holiday letting. The South West has become a very popular holiday destination from the staycation and dog owner families looking to remain in the UK. Properties offering a home and income, perhaps already being used as holiday lets will remain popular with out of area buyers looking for a lifestyle change or alternative investment.
I personally can see stable house price growth this year, which will be determined mainly by the expected larger number of sellers coming on to the market than we saw in 2019.
The usual holiday hotspots as well as the large towns/cities of Taunton, Exeter and Plymouth will see growth, as mortgage rates will remain low. Coastal locations will continue to attract large numbers although the interest will be governed by affordability. There will be more first time buyers entering the market attracted by the continued high volume of new homes being built and various incentives such as Help to Buy on offer. New homes sales was an incredibly strong part of our business last year and we expect this to remain in 2020.
As the West Countries largest independent estate agent we are always keen to hear from new clients looking to benefit from Bradleys unique marketing strategy so please feel free to contact me. Tel 01392 272111