Rental investors and first-time buyers boost Doncaster property market
In Doncaster last year, the market was stronger than in 2014, but remains behind the national statistics as described by the media, which are largely propped up by growth in the London market.
Doncaster saw an influx of out-of-area investors looking to achieve high rental yields, particularly in the £40,000 to £90,000 bracket. This, combined with a new confidence in the market and ability to buy among first-time buyers, has seen a positive movement at the lower end of the market, enabling onward moves for many of our vendors.
This was the second year of trading for Preston Baker in Doncaster, and we saw some major growth in the market place. We are now establishing ourselves as one of Doncaster’s highest-selling estate agents: currently, 36% of our stock is sold subject to contract, which is 10% above the market average.
Predictions for 2016
I see 2016 largely replicating 2015, with slow yet steady growth throughout the market. The first quarter of 2016 is continuing where we left off in 2015, with a high number of investors buying property with a view to completing before the stamp duty tax change at the beginning of April. This will result in a higher number of rental properties available in the market.
The confidence of first-time buyers will grow, especially once the threat of competition from investors dwindles after April, giving those that are looking to upsize the ability to do so financially. The key to a successful market in 2016 will be ensuring that there are enough properties at the top end of the market to accommodate those buyers looking to move on.
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