Welcome to your August edition of the Fish Need Water newsletter!
Here’s what we’ve got coming up:
- Are house prices falling off a cliff?
- All the latest need-to-know news.
- Top tool: Liveyield.
Are house prices falling off a cliff?
The other week, Nationwide reported that average house prices had fallen for the third month in a row – something we haven’t seen since the height of the financial crisis in 2009.
And while the downward trend exists throughout the UK, it’s London in particular that people are worried about. After all, the capital is where migrants tend to arrive – and they’ve already started falling in number. It’s also where companies are (at least considering) shutting shop and moving abroad post-Brexit. Less demand = lower prices.
So if you’re thinking of selling your London property, what should you do? Is it best to drop the price now and sell up ASAP, because things are only going to get worse for you? That’s what some experts appear to be suggesting. Or should you wait until prices start rising again, whenever that may be?
Our view: it depends on your situtation and type of property you are selling. Yes, demand has fallen and prices have dropped – but that’s not the whole story.
The other factor to bear in mind is the state of the buy-to-let market: the combination of stamp duty, higher taxes and strict new affordability tests has caused all but the best-prepared and most sensibly leveraged landlords to give up or at least slow down their property purchasing.
The result? The one/two-bedroom properties that landlords would grab before anyone could get a look-in are now being gobbled up gleefully by first-time buyers – buyers who’d previously been unable to get a foot on the housing ladder. What’s more, banks and building societies are happily lending them the money at great rates. They need to lend money to someone, after all, and many landlords have disappeared.
So what does this mean for you?
If you own a property that could potentially be suitable and attractive to a first-time buyer, target them:
- Make your property move-in ready (no first-timer wants to deal with renovations, repairs or replacements).
- Consider selling items like your washing machine, oven and fridge-freezer with the property, so that it really is as move-in ready as possible.
- Stage the home so that they can imagine themselves living there (which means removing all your distracting clutter).
- Make clear in the advert that it’s perfect for a first-timer (or tell your agent to do so).
Want more tips on how to market and sell your place to a first-time buyer? Give us a call: we’re always happy to throw some more ideas your way! 020 3199 3492
A bit of a quiet month, but still a fair amount to report…
American investment in London property is at an all time high due to the fall in sterling. But what are they buying? And where?
£90,000 pw – UK’s most expensive rental property. It includes “the use of the in-house Aston Martin Rapide”.
Here’s what you can buy in 10 stunning cities around the world for the price of a one-bed London flat. OK, we’ll admit that the comparisons are fairly astonishing. But who’d want to live anywhere but London?!
Our useful tool of the month: Liveyield
One for the investors! Liveyield uses data from Zoopla to tell you how different areas are performing. Bear in mind that it’s automated, so use with some caution.
The end! (Until next month.)
Speak to you in September!