Latest News January 2010
Appleby Petfield have been involved on a consultancy basis in preparing schedules for the ongoing viaduct works at London bridge, working on preparing schedules of condition of existing properties affected by the proposed works.
State of the Market January 2010
Since the last review significant changes have occurred in the market which are beginning to have a positive effect.
Interest rates have now remained stable for a number of months being 0.5% such stability is important to allow both buyers and sellers to better plan when considering property sales and/or purchases.
The late spring period saw a brief upturn in market activity and media evidence indicated that whilst there is a still a general decline in property values there are property hot spots developing. This primarily was as a result of the lack of supply rather than a significant increase in demand.
In the mid/late summer period the activity in the market rose and as new properties came onto the market these were quickly ‘snapped up’ where buyers already in the market place had become frustrated by aged and overpriced stock.
Such circumstances can be sufficient to create demand where sellers sell property unexpectedly quickly and thus become encouraged by this, causing a spread of hearsay evidence and a positive message.
Activity however has now started to dwindle a little as we enter the traditionally quiet Christmas period. Media and online sites are reporting price rises. This is not really being experienced locally but the gap between asking price and sale price is narrowing. Sales are proceeding but buyers are still very nervous and are suffering from a lack of new properties.
It is likely that price instability will continue early into 2010 but if the difference between asking and sale agreed prices narrows this is a positive sign. It is worthy of note that properties are still very price sensitive and those which are considered to be over priced will suffer severely from a lack of interest. The removal of the £175,000 stamp duty threshold may not be good as properties below this value were selling well.
The forthcoming spring period is usually full of hope but demand and buying decisions will both be tempered by the impending general election, likely to be anytime between March and May 2010.
From our perspective the architectural design side has continued to remain in demand with clients choosing to extend or adapt properties rather than move.
Now may be the time, if not already too late to consider development opportunities by the purchase of land at lower rates as by the time Planning and Building Control Approvals are received, particularly on more sensitive developments, the market may have turned creating a positive return in development opportunity.
A warning to commercial property owners/leaseholders.
We are still finding clients who have not had asbestos surveys’ carried out under Control of Asbestos at Work Regulations (CAWR) and at least a Type II survey is needed to comply with this legislation. It is a criminal offence not to comply. Surveys should have been put in place since October 2005.
Andrew and Tom are happy to discuss your requirements and carry out surveys for you and in compliance with the legislations. See the link to Services in the side bar. within the market.