BTD Estate Survey
By The Dart Survey of Local Estate Agents
With all the recent press talk of an unsustainable ‘property bubble’ in London and the possibility of an imminent increase in interest rates, By The Dart decided to take the ‘temperature’ of the local property market. Therefore, last month we surveyed all local agents to ask them a few questions about current trends.
If you watch the local market closely, you’ll have seen the expected seasonal upturn in property listings. Presently, the main internet property portal sites (Rightmove and PrimeLocation) list approx 300 properties for sale in the TQ6 area – of these 23% are on the market for less than £250,000, 43% in the £250k - £500k bracket, 19% £500k - £750k, 7% £750k - £1m and 9% over £1m. No great surprises there although the 25 or so properties priced over £1m has seen a surge in recent weeks. Do these figures speak of a recovery in the market both in the number of properties available for sale and the prices that are being advertised?
According to local agents, the number of sale instructions of properties below £500k is broadly the same if not slightly higher than last year. In the £500 - £750k category, if anything there has been a slight fall in instructions whereas there’s been a corresponding increase in £750k –£1m properties. Above £1m, there are now more properties listed than a year ago.
With a modest increase in properties for sale this year, buyers’ enquiries have either increased slightly (43% of agents report this) or increased a lot (29%). About 15% - 20% are buyers in the TQ6 area looking to move locally and a similar number living elsewhere in the South West looking to relocate here permanently. Interest from elsewhere in the UK is strong – probably 10% - 15% are buyers from London and the South East looking to move here full time albeit 25% - 35% looking to buy a second home or holiday home in the area. Similarly, about 10% are from the Midlands & Wales wanting to relocate and 25%+ also looking to buy a second home. Clearly and not unexpectedly, it’s the second home interest that is greatest, particularly from London.
Interestingly, the most buyer interest is in the £250k - £500k bracket (71% of all prospective buyers) suggesting that there may be a lack of property for sale at this price point or that correctly priced property will quickly find willing buyers.
A sense that the market may be unblocking is indicated by agents (71%) saying it’s taking less time this year to secure an agreed sale. That might indicate that pricing of property is broadly right albeit the average time (57%) is still 3 – 6 months. Less than half the local agents are seeing it take less than 3 months.
London may be booming but half of all local agents are reporting only a slight increase this year in prices – indeed 2 are saying there has been a slight fall perhaps indicating more sensible expectations of vendors? A similar number see prices broadly the same as last year.
Whilst the local market is clearly not experiencing the froth of the London market, the majority of local agents are either positive or very positive about prospects over the next year. When asked to consider what will have the most impact on the health of the local market, the two most important factors are vendors’ price expectations and a strong flow of new sale instructions. This is consistent across all agents’ responses. Of course, an upward pressure on interest rates and maintained strong interest from buyers of second homes are important also but slightly less so. If anything, the London market is a bit of a distraction and will have only limited impact on Dartmouth. Similarly, restrictions on mortgage applications are much more likely to affect other areas in the UK than they are locally.
Overall, it would appear that the local property market, from the agents’ perspective, is ticking over at a slightly higher pace than before but remains very price sensitive. If vendors’ expectations about price are sensible then they will likely find willing buyers.
First Published By The Dart July 2014
