By Lindsay French, Partner at GFW.
As the UK gears up for a general election, there is much speculation surrounding the outlook for the UK residential property market, amidst the backdrop of fluctuating interest rates and political uncertainty.
Lindsay French, Partner at specialist property consultancy GFW, draws on her 18-year career in residential sales and lettings to provide insight into the current landscape of the North East property market and what the future may hold.
Buyer confidence holding strong
“Despite the upcoming election, in the North East we are seeing the market remaining steady, despite vendors and buyers awaiting a potential change of government and what this could mean for the housing market. All four main political parties have pledges around housing, with the Conservative manifesto including the abolishment of stamp duty for first time buyers, on property’s up to £425,000, while Labour plan to build 1.5 million new homes over the next parliamentary term. Both initiatives are great news for anyone looking to get onto the property ladder, something that has been a lot more challenging in recent years on account of the rise in house prices and fluctuating interest rates.
“The buyer confidence that we are witnessing as a business is also supported by new Rightmove data, which shows monthly buyer demand and sales agreed tracking 5% and 6% higher than this time last year*. Buyer demand is holding strong as a whole, we do see a contrast between areas of the region, with a high volume of activity across all types of property in the south of the region in our Durham, Barnard Castle and Bedale offices, While in our more Northern patch of Alnwick and Hexham, we continue to see strong buyer demand, particularly for coastal properties and holiday lets, but we are still seeing demand outstripping supply.
Vendor priorities in the current market
“In terms of vendor’s priorities at the moment, there is still a focus on getting the right agent for the right price, however my feeling is that you should always go with your gut and the cheapest fee isn’t always the best fee, as you absolutely get what you pay for. This also applies when selling a property, it is often a perception that the highest offer is the best offer, however, its more about the position of the purchaser, alongside the level of the offer and sometimes a marginally lower offer which is cash and with no chain is much more desirable than an offer £5,000 higher with a chain and a mortgage
“We understand there is also still some apprehension surrounding the impact that the election will have on interest rates, however we believe there is no cause for concern and the market will hold strong. There may be some potential buyers who are holding out for a significant drop in interest rates as were seen in 2020, however it is worth remembering that these interest rates of c.1% were the exception to the rule and what we are experiencing now is completely normal.”
Opportunity knocks
“There is a significant opportunity in the current market for anyone with land to sell, as the price of land has increased in recent years, so anyone with land to dispose of is in a really strong position.
“We have also witnessed a rise in the demand for family homes, with an increased number of buyers looking for a multi-functional space as hybrid and remote working continues. Home offices and large garden spaces are still highly desirable, as people continue to spend more time at home and look to maximise their space.
“It’s great to see that despite the political uncertainty in the UK, buyer confidence is holding strong which provides a really positive outlook for the property market as we continue to navigate through these uncertain times. The market’s stability, coupled with potential policy changes, presents unique opportunities for both buyers and sellers. At GFW, we are committed to guiding our clients through these times with informed advice and expert support, ensuring they make the most of the current market conditions.”
