We’ve all been glued to our seats in front of the TV, watching awesome feats in the sports arena, during the London 2012 Olympics – so now it’s time for a reality check back in the world of property.
So let’s check out the latest stats, figures and commentary in this report from Property News uk:
You’ll see that, as ever, there are contradictory indicators and info coming out.
My advice is – don’t be fazed by this.
It’s still a great time to invest in property – but it does all reinforce the importance of making sure you invest in the right property, in the right area, at the right price, using the strategies that work in today’s marketplace. Expert advice from professionals is essential – it’s a risky time for amateurs.
So you’ll see that landlords remain confident, despite an increase in voids and in arrears. This is because a professional landlord knows that with the right property in the right area, at the right rent, there is currently a huge demand for rental property from good quality tenants – and plenty of them just do not experience these problems.
This is what Property Reporter uk has to say…
“Chesterton Humberts’ latest monthly research reports on what appear to be some contradictions in both the sales and lettings sectors, throwing up some thought provoking questions about the true health of the housing market.
Latest figures show that the number of residential sales in England & Wales in Q2 2012 was higher than the corresponding quarter in 2011, with Q2 sales also up 4.2% on Q1 2012, despite the economy contracting every quarter so far this year and mortgage lending remaining low.
In the private rented sector, a recent survey suggests landlords are the most confident since 2007 whilst other evidence shows that average void periods rose to 3.1 weeks in Q1 and that 49% of landlords have experienced rental arrears in the last 12 months and 37% worried about arrears issues in the months ahead.
Nick Barnes, Head of Research at Chesterton Humberts explains:
“These statistical contradictions are posing some interesting questions for housing market analysts: on the one hand we have an economy that has been locked in recession all year with consumer confidence at a low ebb and yet transaction volumes have been rising.”
“The increase in sales volumes and drop in mortgage lending in June suggests that either a large number of the sales were transacted for cash or that finance was secured from sources other than traditional mortgage providers. In the lettings sector, ARLA and the NLA between them report a rise in both void periods and rental arrears, whereas 22% of respondents to a recent Paragon survey claim they would add to their portfolios over the next 12 months.
Other key observations from the report include;
– The Chesterton Humberts’ Regional Thermometer gives the South East top place above London
– New home registrations in Q2 decreased by 24% compared to Q1 2011, with private sector registrations falling by 10% over the same period confirming the housing shortage
– Average price growth slowed in London but average prices are 2.3% above their 2007 peak
– Six out of ten regions outside of London saw monthly price rises with Wales the star performer (2.5%)
– The North East – which has often underperformed the rest of the country – achieved the second highest monthly house price growth (1.7%)
Robert Bartlett, CEO, comments:
“The housing market, by virtue of its size and the sheer number of commentators reporting on it, is liable to throw up a variety of – sometimes apparently conflicting – statistics. The consensus view from our front line operatives, however, is of a sales market which continues to battle against a backcloth of unfavourable conditions and even the prime London market is pausing for breath. The lettings market has also been slowing as the year has progressed but remains in fundamentally good shape. In contrast to the sales market which remains characterised by both low demand and supply, especially at the prime end, there is no shortage of tenant demand although increases in stock have resulted in slower rental growth.”
“As ever, confidence remains a critical factor in these challenging times and we desperately need to see some more positive news regarding key economic indicators such as GDP growth and employment – evidence of increased mortgage lending and housebuilding would, of course, also help to stimulate the housing market.” “
You’ll notice of course that the report hightlights the overall UK housing shortage – which continues to drive rental property demand.
Well, of course we live in interesting times – and no doubt the media will now turn their attention back to economic issues, after the excitement of the Olympics. Even so, all the professionals I know are keen to tap into the enthusiasm we’ve seen at this showcase sports event and are very optimistic about the prospects for the future, while being careful to assess the risks and make sure they invest in the right property, in the right place, at the right time.
To your Property Success
Del Brown, Property Investment Expert and author of Making Money From Property – Bristol Fashion