Property Market Comment  -  September 2011

The residential property market within the Herefordshire, Worcestershire, Gloucestershire borders area has performed better than expected so far this year.  After a quiet start and despite the negative headlines demand for property has remained at a robust level and sales are being agreed and finalised on a regular basis.  The key to achieving a sale is accurate valuation together with effective marketing.  By embracing these principals we have at John Goodwin managed to achieve sales levels which are currently approximately 10% higher than the same period last year.

Clearly these levels are still below the levels enjoyed in previous years but those achievements now seem a long time ago and are unlikely to be repeated in the foreseeable future.  Mortgage availability still remains a significant constraint making a full market recovery more difficult to achieve.  Many purchasers see the current market as offering excellent opportunities for trading up or down and in relative terms this area continues to be attractive to many purchasers from outside the region attracted by a quality of life in a delightful environment.

The change in market conditions has certainly increased the level of demand for residential lettings and as a result investors are still purchasing properties with a view to letting.  Many applicants see letting as more suited to their requirements in the current market and with house prices not increasing there is a decreased likelihood of becoming priced out of the market.  Nevertheless it can often be more expensive on a monthly basis to rent property as opposed to purchase.

Demand for commercial property particularly retail premises continues to be relatively strong.  Smaller industrial units continue to find tenants but demand for office accommodation is relatively weak.

John Goodwin FRICS