Ian Preston's Property Market Update for May 2016
So this month what I want to try to do is talk about some of the differences which are occurring all over the market in terms of available stock.
Now at the moment we've been talking about shortage of supply which has become something of a cliché, but actually the situation is not as simple as that. In certain markets like York, there are 26% more instructions coming to the market than there were in the same period last year and somewhere like Moortown in North Leeds, there are 0.5 per cent less. So there are wild varieties depending on where you are.
One of the big stories we've been talking about for the past two months has been the Chancellor's planned rise in stamp duty for buy-to-let investors adding a 3 per cent surcharge onto any purchase of second homes.
Now one of the real concerns which both customers and colleagues have been asking me about over the last month or so has been:
‘What's going to be the impact in terms of the number of buy-to-let purchases who are looking to make offers? Will be they be making lower offers to take account of the stamp duty?
Whilst it’s obviously quite early to tell in the first month, we've see some really interesting results.
I want to give you an example of a property just around the corner from St. Anne's Grange where we are today, (9 Langdale Gardens, Leeds) it's a fabulous property which was on the market for £135,000 - such prime first time buyer or buy-to-let developer territory. We bought the property market using our Property Launch method, there’s been lots of interest, lots of offers, best and final bids which haven't yet been concluded but will be very soon.
The sorts of offers in excess of the asking price are 15 per cent over the asking price, so it's a huge amount more than we originally had the time the property for and that interest was made up out of first-time buyers and buy-to-let investors.
So from our point of view we have seen absolutely no impact whatsoever in terms of people being put off from entering the buy-to-let market by the 3% surcharge. If you think about it's really just a cost of entry and anyone looking to make a long-term investment property clearly is not going be dissuaded by that.
The other area I wanted to touch on are these regional differences. Before doing this video today I had a good look at the national house prices surveys.
The most up-to-date one at the time of the shooting this video was a Nationwide March 2016 survey and they were talking about accelerating house price growth also talked about a North-South divide. I looked at the statistics for Yorkshire and the Humber and what they were telling us is that house prices were increased by 0.6% and I thought well doesn't really tell a picture by any stretch of the imagination for the marketplace is that Preston Baker trade in.
We trade in Sheffield, Doncaster, Selby, North Leeds and York. And so the big story for the last two years which we've been banging on about and every other estate agent has too, is that there is not enough property to sell. Over and over this is the message which has been coming out.
What we found is that in each of our individual market places the picture is really mixed. As I indicated beginning of the video in places like Headingley, Leeds we’ve seen a 14.3 per cent increase in new instructions year-on-year April 2015 to April 2016 and an 8.5 per cent fall in Moortown Leeds and a 26 per cent rise in York. So dependent on where you live you're going to be experiencing a really different set of market conditions and my advice to you is to get in touch with your local Preston Baker branch.
So if you've got lots of choice fantastic get out their view some properties. If you can't find what you're looking for, one of the things which our negotiators are trained to do every day is to help customers find properties which haven't yet come to market. So whether its leaflet distribution whether it’s getting on the telephone and calling customers who live on the street where you want to buy but maybe we valued their house a year ago, or maybe customers who've registered in our York office but have a house to sell in Leeds. We try and match people together with no cost to you whatsoever and obviously it helps us bring your property to the market and helps our customers move.
So I hope to have some really interesting stuff to talk about next month as we get more data coming through about what stock levels are doing about how much property is coming to the market in your area. Thank you very much for watching, I'm really looking forward to see you again next month.
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