Is there a New Homes Boom in the West Country?

Comments such as “those homes sold quickly” or “they’re selling them as fast as they can build them” have started to creep back into everyday conversation in the West Country.

Demand for new homes throughout the South West appears to be at fever pitch when compared with the housing market for the last seven years, and in isolation, the supply and demand imbalance going into 2014 looks similar to the boom conditions of pre-2007, but with one exception. 

During the Boom, buyer demand not only outstripped the supply of new homes, but prices increased on a weekly basis.  This time round, whilst demand is good with most new homes sites reporting the majority of homes selling from plan stage, pricing has shown only modest growth over the last year with expectations in 2014 for demand to strengthen but for house prices to stay in check. 

According to Chris Baxter, Corporate Director of Bradleys Estate Agents, the  levers behind increased new homes demand are, the introduction of Help to Buy in the second quarter of last year, relatively stable interest rates on mortgages and because new homes developers HAVE to sell their product to tight deadlines, reasonably priced homes. This is likely to continue into 2014. 

Going forward, again unlike the boom of pre 2007 where almost anything sold irrespective of house type or position, this time round if the product does not fit the demand in any specific location and/or the end product is priced too high then the homes will not sell. This is a factor of the market that Bradleys can help developers with at planning stage given its extensive market intelligence on buyer trends across its network of 32 West Country Offices.

Anecdotal evidence at branch and site level also suggests that many buyers in the market place are showing a preference for a new home purchase with a home offering lower running and maintenance costs, a ten-year NHBC warranty and the reassurance that they are purchasing a home that has no on-going property chain. 

Bradleys New Homes department, which handles sales on new homes sites throughout Somerset, Devon and Cornwall, has seen a relative uniform picture of this trend going into 2014 irrespective of County or price range. There are a couple of factors on the horizon that may exacerbate the situation, one being a possible shortage of skilled labour in the house building industry and the other being any intervention by the Government or the Bank of England to adjust interest rates or impose lending constraints, although it is perceived this is highly unlikely in the run up to the 2015 election.

 

Chris Baxter 
Bradleys New Homes Director 

Free! - 23 Hours and 50 minutes

The news for the property market just gets better and better. Mark Carney has now stated that even if the unemployment threshold he set at 7% before he would consider increasing interest rates is achieved, he still won't consider increasing  rates for the foreseeable future. He has also confirmed that increases when they eventually come will be gradual and will remain lower than before the crisis. This is fantastic news for buyers and homeowners and again proves that there has never been a better time to buy. Cheap mortgages are available and so long as buyers have a 5% deposit then now is the time to buy. The Governor of the Bank Of England also confirmed that the UK economy has the strongest growth in the developed world so confidence is high and the market is set to grow further. I have said previously that nothing is spiralling out of control and the modest 3.5% increase seen in 2013 should be similar again for the South West in 2014. In the world of estate agency that just means that here at Bradleys we are actively seeking new instructions to feed the increasing supply of buyers. It is documented that 25% of sellers make a snap decision  on choosing an agent based on no more than 24 hours' worth of research. I for one, if I was one of those vendors would do myself a favour and cut the research to just a very quick 10 minute search on allAgents.co.uk to see who delivered the best customer service in my area and therefore save my self the other 23 hours and 50 minutes of research! Equally it is also well documented that 40% of vendors research and consider their choice of agent for 4 - 6 months before taking the plunge and giving their instructions. Those people will make their choice based on all the factors needed to gain a good rating on allAgents.co.uk so think how much time those people could save? Why take chances with the sale of your most important asset, trust Bradleys, the agent with a proven, tried and tested track record as confirmed by their customers. If you are thinking of selling then use allAgents to choose your agent, you can read the reviews given by Bradleys previous very happy customers, I guarantee it will save you time, money and heartache.

Francis Marshall FNAEA
Managing Director
Bradleys Group

Getting the best price for your property.

With more people viewing properties now than in the last five or six years, it is extremely important that houses for sale look their very best to maximise their value potential. Richard Greetham Director Bradleys Estate Agents makes a few suggestions on how to start.

In the US staging – preparing a property for sale - is big business. Professional staging firms clean, de-clutter, furnish, re-furnish, hang pictures and even decorate to make sure that an individual property looks, smells and feels its very best. Getting a property ready for sale sometimes costs thousands but can add tens of thousands to a sale price so is usually well worth doing.

In the UK staging hasn’t really taken off - despite the TV property programmes that show just what a difference a fresh pair of eyes and a bit of imagination can make.

But while we may not feel the need for a stager we should be aware of that vital first impression which is influenced by the cleanliness, neatness and order of a well-maintained and well-loved home when it is shown at its very best.

As we come into the spring, property selling season now is a good time to think about how your property will appear to a buyer. Your home will look more spacious with fewer things in it. Surfaces should be cleared of clutter. Also it is surprising what a difference can be made by taking away just one piece of furniture from each room. Everywhere will look so much more spacious. Give your home a deep clean and if you don’t want to do it yourself get in a good cleaning company to do it for you. As the evenings draw in get the fire going if you have one. A fire in the home is one of the basic human needs and people always respond.

Telling a seller that the look or condition of their house is not actually doing them any favours can be hard for anyone including an estate agent. It is a highly personal subject. So make it easy on yourself - ask your agent what should be done. And then follow his or her advice.

Preparing a house for sale takes practice and the understanding that more of a blank canvas is preferable, so potential buyers can build and decorate in their imaginations without the distraction of other people’s taste. So if you are selling this Spring choose an agent who is not merely going to put your home on the market but  make yours the one that’s most desired.

That is the real way to make more money from a sale - it won't come simply by adding a few thousand pounds to the asking price and hoping for the best.

For a free appraisal of your home contact you’re nearest Bradleys Estate Agents.

Richard Greetham

Director

Will ‘Help to Buy’ kill ‘Buy to Let’?

There has been a lot of speculation about what is going to happen to the Lettings market, in light of a steadily improving sales market and in particular the effect on the continually popular Buy to Let arena.

The view of Lyndon Bent, Director at Bradleys Estate Agents who oversees the letting of over 1000 properties a year in Devon, Cornwall and Somerset, is that Rental sector is to remain strong. He maintains Buy to Let could feature even more than before during 2014, despite the Government’s help to Buy scheme doing its best to kill off the lettings sector by dragging more first time buyers out of tenancies. The industry pundits view of life sounds out his beliefs.

The Help to Buy scheme for New Homes has been running for some time now, yet Bradleys Let nearly 10% more homes in 2013, than the previous year, so no adverse effect seen there. The extended scheme which came into full flow at the beginning of January will undoubtedly encourage some First Time Buyers out of the rentals sector, however a recent Rightmove survey of Tenants revealed that only around 15% of them acknowledged that their savings were on track to be able to find a sufficient deposit to buy. This is of course Contrary to the widespread knowledge that Tenants would prefer to buy rather than rent. Indeed the report also shows record levels of ‘Trapped Renters’ (those who would like to buy but can’t) has risen to 60%.

Add this to the economy still driving struggling homeowners into the rentals sector points to the reality that we are not likely to see a significant change in the rental sector market for some time to come.  

It must be conceded that we are currently in a period of Rental Value adjustment. MoveWithUs, who represent over 1000 estate agents across the country, issued their Rentals Index covering the last quarter of 2013, which suggests a £10 reduction in average rents in the South West. Down to an average of £780 per month, from £815 at its peak. This is a downward trend that started early last year across the country (except in London of course), but not necessarily experienced by all Bradleys offices. Indeed forecasts indicate Rental Values are now levelling out and maybe set to increase again throughout the year.

In summary, there is much for Buy to Let Landlords to look forward to this year. Property values are still competitive enough to provide good rental yields. Bradleys will continue to offer great investment opportunities to existing and aspiring Landlords by highlighting the potential yield of their properties for sale and best Buy to Let mortgage deals available though their Independent Financial Management arm.

For more information please contact your local Bradleys office or visit www.bradleys-estate-agents.co.uk

Lyndon Bent FNAEA MARLA
Director

 

Leave nothing to chance!

At a recent meeting of Estate Agents on the outskirts of London, one  agent remarked that the year had started disastrously with 9 fall throughs in the first 2 days of the year. He went on to explain the cause of the fall throughs were vendors who had agreed to sell but couldn't find anything to buy so pulled out of the deal.

This made me think about the market in general and also of agents business practises. At Bradleys we operate a strict policy of not instructing anyone to proceed on any sale until the proof of funds for the purchase has been seen, solicitors have been decided upon and there is a completed chain in place. This can take some time to get agreed but with a fall through rate of just 23% compared to the national average of 33% last year we are happy in the knowledge that we did everything possible to give the sale the best chance possible to complete and to give all in the chain the opportunity to avoid the dreaded costs of an aborted sale if the worst happens.

 

That made me wonder about the sales where the vendors had pulled out so freely. I wondered if the buyers had been made aware that the vendor hadn't found and the sale was dependant on them finding? I wondered what they thought about the cost of lost time and expense all for nothing? Vendors are our clients but we have a duty to all involved to ensure positions are represented honestly and nobody should knowingly be put in the position of standing a chance of losing time and money without being fully informed before proceeding. This made my thoughts turn back to allAgents and my advice to buyers is to use an agent that has a good allAgents ranking and I am sure this is one of the reasons all of our customers rank us so highly on allAgents.co.uk we are very thorough and leave nothing to chance when dealing with our customers lives and
money.

If you found this blog useful or you think others might then please like it or share it!

Francis Marshall FNAEA
Managing Director
Bradleys Group

What goes down must go up!

According to Isaac Newton, what goes up must come down. Fortunately, in the property market at least, what goes down must also come up. At least that is what happened in the 70s, the 80s and the 90s after periods of recession. Now it looks as if history is repeating itself.

Bradleys Estate agents are always glass-half-full people. But can anyone have failed to notice that things are on the up? High Street spending is up, employment is up, manufacturing is up, GDP is up, the service sector is up, lending is up and the property market is up. In fact the property market is back  in most areas. Is all this a blip? It is now looking unlikely.

The planets seem perfectly aligned for growth in the property market. This is a great time to buy or sell. Low interest rates, plenty of stock in many areas, keen buyers, less reluctant lenders – the market is set pretty fair.

But no matter how the market looks there are still some things we must watch carefully. If purchasing we need to keep an eye on interest rates – they also go up as well as down. If selling we must not get too ambitious and let our enthusiasm for achieving a top price blind us to reality – a glut of properties in the market means a lot of choice for buyers, and buyers never select an over-priced property when a sensibly priced one is available – would you? This is a time for level headed buying and selling - remembering at all times the laws of physics and of the market.

Richard Greetham
Director
Bradleys Estate Agents

Bradleys hits 50,000th Sale!!

Brian Hadfield, Janet Mullins and Mike Dibble.

Bradleys Estate Agents opened their first office in Exmouth at the beginning of June 1992. The company now have 33 offices and earlier this month the company exchanged contracts on sale number 50,000! This sale was a 3 bedroom detached house in Sidford owned by Brian Hadfield and his partner, Janet Mullins. To commemorate the event Director Mike Dibble visited them to make a special presentation. 

Mike Dibble said that the clients were incredibly patient vendors through the sales process. 'We were delighted when the sale exchanged contracts. Various hitches had occurred through the transaction but Brian and Janet stuck with it and got their reward in the end. Janet's niece used to work for Bradleys so I'm sure they were aware that not all sales go through like clockwork! The eventual buyers were very sympathetic with the clients and the issues with their ongoing purchase.'