August proves to be a record month
We saw huge demand for properties in Dartmouth over the August period which goes against the norm. August is usually one of the quieter months of the year but we have seen record levels of activity. It is true to say that pricing is still a factor and much of the activity is in the lower to mid end of the market. These good figures are mirrored throughout the region; I have spoken to a number of agents from the National Homes Network and The Guild of Professional Estate Agents who have all reported excellent figures for the month.
What is slightly more concerning, however, is the lower level of enquiries and transactions in the first part of September. There could be a lull in activity due to people returning from holidays, children back to school etc. The end of September and October market can be one of the busiest times of the year, so agents are hoping to restock and have a good choice for buyers during these selling months.
Lending figures over August have been steady as well, with £16.6 billion lent during the month. There has been talk in the press recently of a ‘housing boom’ but I argue that the housing market recovery to date appears fairly unexceptional in nature at least compared with that of the early to mid 90’s. What seems to have excited some of the media is the levels of activity compared to the last few years, where transactions have been generally at record lows. So all in all, the news on the property front is encouraging; properly priced property is selling and the near future looks healthy with a broad based recovery anticipated.
The things to watch out for over the next few years are any changes to stamp duty which has been mooted in the press and, of course, the Liberal Democrats mooted Mansion tax for properties worth more than £2m. One impact to note, in the near future, is the roll out of the government Assisted Deposit Scheme which provides purchasers with a 20% deposit, 0% interest loan backed by a mortgage indemnity policy. At present the scheme is only available on new builds, but as of January it is available for all property (although the government have changed their minds on second homes, I believe). It will be interesting to see what effect this has on next year’s market.
Richard Blake 01803 832288 www.richard-blake.co.uk
First published October 2013 By The Dart
