As property finders, one of the most common questions we get asked is: “What do you think the property market is going to do in future?”
In spite of our vast expertise in this market as property finders and specialists assisting clients to find their ideal properties, that apparently simple question can be difficult or even impossible to answer.
That’s because what our view today on the property market is may be different tomorrow based on a number of influencing factors.
Prices and prices
Perhaps the first important point we’d like to make is that the price you pay for an individual property and what it might be worth in, say, five years’ time, is not necessarily the same thing as talking about the overall property market.
The property market facts, so often quoted in the national media, are essentially statistical averages. They contain very large generalisations and many skewing factors that can distort the picture they are painting.
As the owner of an individual property, it might be perfectly possible to find that its value has increased rapidly over a short period of time, whilst the media has been full of stories saying that the market is stagnant or even falling. That is attributable simply to local factors that can push property prices up or down versus those great statistical averages across the whole country as quoted in news reports.
So, the first message is perhaps to be a little cautious about reading too much into broad picture headline news reports on the property market. They might mean little for the individual property you are considering.
Instead, discuss the specifics of the property with us.
The national position
At the moment, it is perfectly possible to see very contradictory reports in the press relating to the housing market. That’s because, at the present time, the economy and therefore the housing market are in a volatile situation due to things such as:
- The government’s recent declaration of the end of austerity and the making available large funds for public works;
- The generally very high and healthy levels of employment in the UK;
- Some preliminary indications of the first significant wage growth for some years;
- Concerns about productivity;
- Brexit uncertainty;
- Wide regional variations in terms of property price increases;
- Interest rate uncertainties; etc.
At the time of writing, economists and analysts seem to be struggling to summarise how all of these factors will collectively affect the property market.
That explains why we cannot make sweeping generalisations as to what property prices will do in a given region over time. What we can do, however, is discuss the position in the context of an individual property in a specific area.
Properties we are looking at on your behalf
We can make an informed view based on:
- What you want the property for (e.g. Your main residence, an investment property or a second home);
- The current market in the local area;
- Price per square foot; and
to formulate a granular view accurate and targeted for you as the individual customer.
We can place the property you may be considering in context against that backdrop. As you might expect, we will clearly highlight to you if, in our opinion, the property appears to be of a type or in a location where prices will be likely to rise or fall in the immediate future.
Your primary objective
We assist clients to find properties for many different purposes.
Some of our clients are looking for second homes. Yet others are interested in significant buy to let opportunities. Many are, as you might expect, primarily interested in finding a property for their own lifestyle, comfort and main place of personal residence.
To an extent, the purposes of the property may also influence its potential value going forward.
In some cases, if your primary interest is to find a home for your family, then the economic assessment of its potential value in future may be of secondary importance. On the other hand, if you see the property as primarily an investment opportunity, where you are looking for fast growth over a relatively short time period, then the economic analysis may be significantly different.
The property market today
Ultimately, we cannot tell you exactly what property prices will be doing in an area you are considering buying into in say three or four years’ time. No other individual or organisation will be able to offer you guarantees in that respect either.
We are expertly positioned to offer advice on the current valuation of a property you are considering, plus what might be some realistic scenarios for the future of desirable property in the area.
Focusing your requirements, the purpose of the property and your future plans we can guide you to buying the ideal property at the best possible price.
Why not contact us for a more detailed discussion at your earliest opportunity?