Property Market Comment  -  April 2010

After a quiet start to the year in January and February the market during March has burst into life significantly.  The principal explanation for a slow start to the year possibly related more to the state of the weather rather than the state of the market with the area being particularly affected by the snow and ice.

With the arrival of March and spring trying to struggle through buyers seem to have returned to the market with the result that sales levels have significantly increased when compared to February and when compared to March of last year.

One of the noticeable factors affecting the property market throughout last year was the lower than average amount of property coming onto the market.  March has seen a noticeable improvement in the amount of property coming onto the market and this is helping to provide prospective purchasers with a greater choice of property.  This in turn seems to have encouraged more prospective purchasers to place their existing property on the market.

The Rental Market

Demand for residential rental property remains high and this is a factor which has been noticeable over the last two years or more.  The supply of property available to rent in the area is relatively low and prospective tenants are faced with much less choice than they had six months ago.  Currently we are agreeing in excess of forty lettings per month.

Commercial Property

The commercial market over the last two years has been nervous and cautious at times.  There has however been an upturn noticed over the last six months and an increasing number of lettings have been agreed in respect of shops, offices and industrial premises.

The retail market in Ledbury has once again become very strong and this appears to be in sharp contrast to many other areas both in the region and nationally.  Six months ago there were a number of empty sale shop units available within the town and now there is virtually nothing available.  Lettings have recently been agreed in respect of a number of High Street locations the most noticeable of which has been the refurbishment and reoccupation of the former Woolworth building now occupied by Well Worth It.  We have also negotiated a successful letting of the Seven Stars public house having negotiated the purchase of the premises on behalf of a local investor.

Generally the market seems to be shrugging off the uncertainties of an election within the next two months.  Nowhere was this more noticeable than the release of a new development of flats and apartments at Crystal Mount, Malvern.  The first two open days attracted more than 100 viewers in just one weekend and the two penthouse apartments were reserved even before marketing began.

John Goodwin FRICS