Property Market Preview for 2017
Richard Ashton of Allan Morris gazes into the property market crystal ball for 2017.
The national press is fond of repeating what housing market gurus have to say about the luxury market – especially that in central London. This seems to suggest that it is an important part of the property market. However, although it has an influence, it is the other end of the market which is most important. The lower end drives everything. So if we want to understand about the health of the property market as we move into 2017 we need to look at how first time buyers might fare and not at the relatively small market of houses for the super rich.
However predicting anything at the moment seems pretty futile, whether it is the economy, politics, the global order, Europe, the USA, or property, 2016 showed us that. Yet one thing we do know: first time buyers now have a better chance of getting on the property ladder now than for many years. Interest rates remain low, mortgage lenders are keen to lend and investors with cash have been rather quiet – thanks to George Osborne, who increased stamp duty for second homes and buy-to-let purchasers, and stripped the mortgage tax relief advantage from the same group.
This has opened the door of opportunity wider for first time buyers, and this is certainly something we have seen in Malvern, and through the rest of our offices in Worcestershire. Yes there are areas where buying will remain a challenge – those areas of the county where prices are historically high. These are places where first time buyers may find it even harder to raise sufficient deposits despite larger than average earnings. But for other areas things are a little easier, especially in those places where sellers realise that the values of their homes are not necessarily what they wish them to be but are what buyers can actually afford.
So what will 2017 will bring. If 2016 is anything to go by there will be lots of surprises. But one thing never changes – people will still want roofs over their heads. Young adults will want their independence; many will move to different parts of the country for work reasons. Inevitably there will be new relationships and young families. When these things happen a home is required. This country is built on this cycle of life and ambition, which is why the entry level of the property market is always more important than how the very wealthy people choose to spend their money.
If you are interested in learning more about the current forces acting on the housing market in South Worcestershire, or would just be keen to know the value of your home in a new year, please feel free to give me a call on 01684 561411 or email me at email@example.com