PREDICTIONS 2011
Mortgage availability
will remain very tight-impacting on the ability and motivation of
potential buyers.” Simon BradBury, Fine & Country and thomaS morriS eState agentS
“Demand for private rented “Property price indices are notoriously
poor at presenting an accurate picture when transaction volumes are at the low levels that are currently being experienced, but the consensus is that prices have been stabilising in recent months and in some locations, falling back. It is likely that 2011 will present a similar picture, as access to finance remains an issue and the demand
from purchasers remains subdued.” Neil Young, CEO, Young Group
agency The number of estate agent offices will
reduce by at least 10 per cent – lower sales volumes, falling house prices, and challenges to fees will take its toll. Less efficient offices will close and the number of individual estate agents will also be lower at the end of 2011 than now. The number of agents using the Personal Agent business model will increase. As the traditional/old business model comes under attack, enterprising individuals will look to advance their own careers by becoming self-employed under the banner
Grant Shapps introduces a
housing policy that is actually well thought out and not simply a
cheap sound bite.” mike day, integra
of a strong brand with technological support and good training. This is the way
of the future.” Simon Bradbury, Partner, Fine & Country and Thomas Morris Estate Agents
Lettings
“The lettings market in the West End has been particularly buoyant throughout 2010 – we have signed 20 per cent more tenancy agreements in 2010 than in 2009. We are
expecting this trend to continue in 2011 as there are still a large amount of would-be buyers in the rental market. Because the demand for quality rental properties in the West End currently outweighs supply, rental prices have risen in 2010 – dramatically in some cases – compared to 2009. Last year, a typical two bed flat in the West End cost approximately £518 per
week, this year, it would cost around £577.” Laurence Glynne, Partner, LDG “My view is that more buy to let
investors will start to come out of the woodwork in 2011, encouraged by an easing in lending criteria and a growing demand by tenants. This should help redress the balance of supply/demand which currently favours Landlords. From our perspective as letting agents, any increase in potential Landlords would
obviously be a good thing.” Denis Miguel, Director, Key Letts
accommodation will continue to increase, as potential buyers are unable to raise mortgage funding and are forced to continue renting, as well as increased demand as unemployment rises and people sell their homes and look for rented as an alternative. Inevitably, a limited supply of stock coming from the social sector will put an increased demand on the private sector. We can also expect a shift due to the housing benefit changes, for example a possible mass movement, in London particularly, which in turn is likely to push rent prices up in those areas as
demand increase.” Damon Thomas, Director, FastTrack
“Tenant demand is likely to remain high and outstripping the supply that will be available. Factors to consider for any current and new landlords stepping into the market will
be the VAT increase and possible likelihood of interest rates rising. “As would-be buyers remain in the rental
market for longer due to the ongoing challenges in securing a mortgage, I would expect to see strong applicant levels, as we have done throughout 2010. However, if landlords raise prices, it is possible we will see more tenants giving notice as they will no longer see the benefit of staying from a price point of view and may well make the
move.” Caroline Kavanagh, Group Lettings Director, Badger Holdings Group “KFH’s 2010 statistics suggests that
renewals are up 41 per cent since 2009. In 2011 I predict a slow rise in the number of investment properties coming onto the market with at least another four per cent
PROPERTYdrum JANUARY 2011 13
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68