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More houses for sale in Carrington, Sherwood, & Mapperley Park

More property needed! That is the message to house sellers considering coming to market following a very solid August. Continuing in the same vein as the rest of the year so far, buyer demand is still generally outstripping supply, leaving some potential movers frustrated.

Talk of interest rate rises are never helpful, however most buyers we have spoken don’t seem overly worried about the effect a .25% rise in their mortgage interest payments would have on their finances. Their bigger concern as always is, stamp duty.

Demand in lettings has been high as is traditional for August. Confidence among landlords is improving which has been reflected in recent buy-to-let lending by the Council of Mortgage Lenders reaching a five year high. We think tenant demand will remain strong whilst the level of house building remains as low as it has been and which shows no sign of changing in the short term.

GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.

Photo by ramnaganat, used under CC BY, text added to original

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The Council of Mortgage Lenders (CML) said that 40,000 mortgages, worth £5.1bn, were advanced to buy-to-let investors in April, May and June. This is the highest since the third quarter of 2008 and this could see new buyers vying it out with investors as the housing market gathers pace.

Year-on-year, buy-to-let lending was 19% higher by volume and 31% higher by value, although it was picking up from relatively low levels. The peak during the housing boom for any one quarter was £12.7bn, which was reached in the autumns of 2006 and 2007. The Council of Mortgage Lenders (CML) said landlords had been taking the opportunity to remortgage their properties during the spring, and were also benefitting from strong demand from tenants.

Sales Manager at GO Property Services, Phil Wardle said ‘this growth is fuelled by a renewed appetite from investors, both new and experienced alike. There is also better availability of buy-to-let mortgages at lower rates and with more relaxed criteria than at any time in the past five years.’

A survey by specialist buy-to-let lender Paragon Mortgages, mirrors the figures from CML with 16% of landlords surveyed planning to add to their rental portfolios during the third quarter of the year. There has been no change in the types of property landlords are planning to invest in, with terraced houses remaining the most popular with 55% (of those expecting to buy) choosing this type of property. There has been a slight increase in popularity of detached houses, with 15% of landlords expecting to buy this property type compared to 12% last quarter.

‘It’s interesting to see the improvement in confidence amongst landlords in the private rented sector, said Phil. ‘We are seeing much more activity as a result of continuing strong rental demand and the investments made by landlords. Tenant demand is healthy, and this is likely to remain whilst the level of house building that the wider housing market so desperately needs remains at current levels.’

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June must surely be the most unpredictable month of the year. After a very busy May, all the signs suggested June would follow suit - it has after all been one of the two busiest months of the year 3 times out of the last 4.

June 2014 was however not a record breaker.

Maybe World Cup fever was to blame? I for one am glued to it most evenings and the search for a new house has taken a back-seat.

It’s not that June was particularly poor, it was just a bit none descript when we really thought it would be busy. Overall, Lettings were pretty solid, with 2 very good weeks balancing out the 2 slower ones. Enquiries for apartments in the city have increased, but we’re finding that properties slightly outside of core areas are not generating huge amounts of enquiries.

In home sales we had a very successful month, with a record number of valuations and sales agreed. We have however started to notice a small drop in the number of buyer enquires.  Generally speaking, house sales remain strong, but flats are still far slower than we’d like. With school holidays now just around the corner, we would encourage anybody thinking of coming to the market to do so sooner rather than later.

Looking forward, July and August are normally the busiest months of the year, driven mainly by education. Students moving house, Doctors moving hospitals, and families moving during the school holidays all happen during July & August, so we’re battening down the hatches and getting ready for the rush.

GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.

Photo by ramnaganat, used under CC BY, text added to original

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In contrast to almost every other profession in the country (ice-cream sellers excluded), July is traditionally our busiest month of the year. Schools & colleges breaking-up, teachers changing schools, doctors and nurses changing hospitals, and recent graduates entering the world of work, result in everyman and their dog moving home and July this year has carried on the tradition.

Despite the recent Mortgage Market Review, homesales still remain buoyant with July being our busiest month so far this year for house sale completions. The good news is that we are also still receiving strong demand from buyers with several house sales in July agreed within 48hrs of instruction. That said, the market does appear to have peaked for the year, and we expect things to slow a little now were fully into the holiday season.

Phil Wardle commented “we’re still finding that properly priced and well-presented properties are selling well, and there is definitely still a shortage of supply. At the start of the year we also had a good level of investment activity and we expect the market to stay relatively strong as we go into the autumn”

In property rental, demand has been very strong too. Price is proving to be crucial, particularly compared to the previous three summers where rents have risen. In Nottingham city centre, the landscape has changed over the past few years with an explosion of purpose built student accommodation. In a move similar to the boom in new build flats in the noughties, corporate landlords are flooding to market with bigger & better student blocks. Whilst this is creating further capacity in the student market, the knock-on effect is that we are seeing a reduction in tenant numbers in the city centre and in traditional student areas this summer.

GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.

Photo by ramnaganat, used under CC BY, text added to original

Nottingham Residential Property Market comment May 2014

In general, despite two Bank Holidays and school half-term holidays, May has been a busy month with increased activity in both Lettings & Homesales.

After a fairly sluggish start to the year, the rental market has now had two strong months on the bounce, which is  soaking-up any over-supply that built-up during a quiet February & March. Rental prices are creeping up a little in a few areas, but in general there isn’t a lot of movement in price year-on-year.

Over the past 3 or 4 years, June has been one of the better months of the year and normally kicks-off the rush into the summer, so we are anticipating a busy next few weeks as people try to get their new homes organised before their holidays.

In line with national media coverage, Home sales are dramatically improved compared to a few years ago. That said, the property bubble that is the current media obsession, is not particularly the case in and around Nottingham. Prices are starting to rise in most areas, but in many the rise is very modest, and it still leaves the property value lagging far behind where it would have been in 2007.

There are a far greater number of buyers in the market, but they are being stifled by a shortage of supply.  Inevitably, the shortage is meaning that sellers can ask more for what they are trying to sell, but we are still finding that buyers aren’t getting carried away and over-priced properties still aren’t selling.

Jonathan Detheridge from GO Property Services comments "In Nottingham, there is still a shortage of core first time buyers coming to the market, which is resulting in the prices of some traditional terraced properties and small flats still being depressed. Hopefully, as the economy stabilses and the job market continues to improve, more first time buyers will have the confidence to return to the market". 


GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.