houses

Out with the old and in with the new?

With the Government promising to build an extra three million new homes by 2020, results released today from a survey of independent estate agents shows that at a national level, demand for new homes has not outstripped demand for older properties. Home Sale Network, the national network of over 750 independent estate agents, surveyed its members to discover which type of new build property is most in demand and where.

The survey asked Network members if over the past five years they had seen an increase in demand for new build homes. Nationally, 21 per cent of members said that they had witnessed an increase in demand and 79 per cent said that demand had remained static. Regionally, demand varied with 50 per cent of Network members in East Anglia reporting an increase of over 50 per cent, followed by both the East and West Midlands where 33  per cent of members said they have seen an increase.

Nationally, members reported the most popular type of new builds were three bed houses, with 45 per cent of members saying that in their area these were the most sought after. Two bed houses fared less well, with only 15 per cent of members saying they were most in demand in their area. Flats/apartments and four bed or larger properties each accounted for 20 per cent of national demand.

At a regional level, demand for each type of property varied. New build flats/apartments were the most sought after in Greater London, accounting for 88 per cent of demand. Demand for newly built two bed houses was reported at 50 per cent in the West Midlands. Demand was greatest for new build three bed houses in Wales and the East Midlands and four bed houses fared best in the North West, accounting for 45 per cent, and the North, where they make up 40 per cent of demand for new builds.

Local Home Sale Network member Heritage Estate Agents spokesperson Paul Kingston said: “There is clearly a great deal of regional variation in terms of what type of property people are buying when they purchase new build homes. We have a dedicated new homes department, which specialises in new properties which are either newly completed, or under construction. As well as having a variety of older style properties on our books.
Heritage Estate Agents have the detailed local knowledge to help buyers find the home that is right for them whether they are looking for a new build or an older style property.”

HOME SALE NETWORK PROPERTY MARKET REPORT

Local estate agent Heritage says figures released today by Home Sale Network, in the National Property Market Report, for quarter four 2007, show that despite evidence of a slowing market, there are still areas of activity and growth in the UK property market.

Richard Van de Velde, Managing Director of Heritage said: “In spite of media reports of a slowing market, there are always people who need to buy and sell, because they are relocating to a new job, downsizing because their children have left home, upsizing because of a growing family, first time buyers and buyers looking for a retirement home.”

The report shows that for the final quarter of 2007 six per cent of the Network’s over 750 members reported an increase in enquiries from people looking to buy property. Regionally, East Anglia reported the greatest increase in vendor enquiries, at just over 21 per cent.

The housing market is affected a whole range of factors, but it is also influenced by the laws of supply and demand,  whereby certain types of property because of their relatively low supply will remain in steady demand and vice versa. Home Sale Network’s figures reveal that in the final three months of 2007, demand for flats and apartments, bungalows, terraced and detached properties increased on the previous quarter. And, when compared to the final quarter in 2006, demand for bungalows and terraced properties have both shown a sustained increase.

Richard said: “In the South West the properties in greatest demand are Semi-Detached. It is important in the current market that properties are priced realistically. Correctly priced properties will attract buyers who need to move whatever the market conditions.”

The four types of property that the Network includes in the average asking price survey have all seen a drop compared to the previous quarter. However, compared against the same quarter in 2006, quarter four, nationally one bed flats, three bed semis and four bed detached properties have all seen an increase in average asking price in quarter four 2007. 

Richard said: “In the South West the average property price in the final quarter of 2007, according to Home Sale Network’s data was £228,457.  On a national level, the average price of properties sold by Network members was £232,062. Regionally, the average price of properties sold ranged from £176,073 in the East Midlands to £307,556 in Greater London.”

Home Sale Network’s managing director, Richard Tucker said: “There has undoubtedly been a slowing in the UK property market. However, as the results of our survey show, looking at the market on a national level fails to take into account the amount of regional variation not only in terms of the prices that properties are selling for but also the level of market activity.”

 

For further information, or to request a copy of the Home Sale Network National Property Market Report, Quarter Four 2007 please contact Kathy Beesley or email: k.Beesley@heritage4homes.co.uk

Ensuring success in a harder market

As the dawn of another New Year is on the Horizon, we can reflect on what has happened to the market in 2007, and look to the future in 2008.
This year has seen a market of two halves, the first six months has shown signs of great buoyancy with increases in property values, combined with customer confidence amongst likes the of first time buyers, investors and families. At this time the market was relatively free flowing and a key indicator of this was the number of new agencies opening their doors at the start of the year. As we draw the year to a close, the market paints a much less rosy picture.
With the market having slowed since the introduction of HIP’s back in August, Heritage are keen to point out the importance of making the right decision when instructing an Estate Agent in 2008. With the tightening of the market, many agents have been slow to react and in some cases haven’t reacted at all to the changes. With the hardening of prices and lack of proceedable purchasers, many agents have continued to try and push prices up in order to gain instructions. However, for many home sellers this has been catastrophic, with an excuse of lack of viewings and little overall activity being argued as the “quiet market”, not the result of instructing the wrong agent at the wrong price. Selecting an agent on the basis of the highest possible price and cheapest fee can be your downfall. More importantly, an agent who can provide an unrivalled marketing package, delivered by professional staff that maintain the highest levels of sales skills, can often produce the best results in a harder market. Heritage on this basis, stand out from the crowd ensuring maximum exposure for your property both locally and nationally realising a consistent level of sales within North Somerset.

We at Heritage have been quick to highlight the need for professional advice when it comes to selling in this tougher market. To be able to do this, we have continued to ensure our company and staff have the best sales skills, marketing tools and utmost professional care when it comes to selling your most precious asset, your home. To do this, we have employed specialized trainers and motivators to further develop our sales and valuation staff. We at Heritage have continued to keep our high levels of customer service at the forefront of our business and all of our offices continue to dominate their local markets.

Whilst we have seen a number of cheap “Budget Rate” estate agency services set up this year, many of these are now falling by the wayside with further High Street Agencies sure to follow suit.

Home sellers and buyers are far more critical today, from the levels of service and professionalism they demand, as to how their property is marketed and sold. More and more clients have instructed Heritage on the recommendation of friends, family and work colleagues, due to the professional way we dealt with their own personal property transaction. These clients understand the need to appoint an agent that can offer the best marketing solutions in a harder market and with Heritage offering links to approaching 750 offices throughout England, Scotland and Wales we can provide the professional and expert service clients deserve and expect.
Don’t leave it to chance, contact your nearest Heritage office today for details on how our style of marketing we will get you moving in the New Year.

2008 - A Year of Positivity

Interest rates will drop by 0.50% over the course of the next year, according to new predictions from Smart New Homes…

  • The company also made the following predictions:

  • Overall house prices will increase between 2% & 4%

  • Average new home prices will rise between 2% & 3%

  • Family homes will experience steady growth

  • First time buyers will be able to take advantage of incentives being offered by developers in the new year

  • Inward migration in the north with remain high as long as prices continue to escalate in the south

  • The sales and price growth of apartments will suffer as a result of over supply

David Bexon, Managing Director of SmartNewHomes.com comments: “We have seen steady growth throughout the year, with house prices up 0.7% on last month and 0.7% over the last year.

After a slow down following the banking crisis, many buyers have chosen to stay away after a loss of confidence in the market.
“However, I believe that 2008 will be a more positive year for the new homes market and I predict an average price increase of between 2% and 3% for new homes over the next year.
“Given the upheaval and the slowing of the market over the last 2-3 years, homeowners may take short term measures such as home improvements and extend their homes. Building extensions or converting rooms and garages will be ways that homeowners will boost the value of their homes, ready for when the market picks up again.
Mr Bexon continued: “Developers will continue to use incentives, so the New Year is going to be a better time for first time buyers, who will capitalise on flattened prices and extra incentives, combined with expected lower interest rates.
“In the long term I expect prices to stabilise rather than rise dramatically as we have previously seen, particularly with the Government’s aims to increase the number of homes to meet demand.”