Ian Preston's property market update for March 2016
2016 has been one of the most interesting markets that I've worked in and we are only 2 months into it. We've got a really interesting combination of factors at work that is creating some really interesting opportunities for you.
Incredibly low interest rates
All of the mood music in the wider economy is about a slow down in China, falling commodity prices which is keeping inflation low. This means that the outlook for interest rates staying at their current levels for longer has improved. If you are not thinking about moving and have a mortgage, get in touch with one of our local mortgage experts who can fix your mortgage at rates that are less than 2% in some cases.
Shortage of supply
I'm sick of saying it, but there are historically low levels of available property to purchase which is a combination of an ageing population, staying longer in the homes that they own and not enough new homes being completed. It's good to see lots more interest in Preston Baker Land and New Homes which has been our busiest department so far this year. New Homes is a great business to be and we are selling out every development that is being brought to us. We've got some great new sites coming on in the next few months, so keep an eye on the website for updates.
The opportunity of this shortage of supply is not about whether or not your home will sell but how much you can sell for. We are continually delighted by the results being achieved with our property launch method of sale which is getting sellers thousands of pounds more for their home by using a simple, but structured approach to the marketing. Go on the calculator on the website to see the difference in prices being achieved for clients who use launch and those who don't.
Stamp duty changes are coming
From the 1st April anyone who owns more than one property will have to pay an additional 3% on their next purchase. So if you are a landlord and you buy a new residential home as your private residence at £300,000 you will be paying an additional £9000 in tax. This is a massive change and not a welcome one. I will of course keep an eye on the impact of this as well as the other big changes coming up, such as the EU referendum and give you our view and reactions to these important market changes.
If you would like to to discuss any points raised here with your local branch manager or with our financial services experts, please ring your local branch here.
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