Introducing our June Auction
It was this time last year that I was writing the introduction for our June 2017 catalogue and mentioned “by the time we hold this sale the General Election will be over”. Well a year on of having been promised “strong and stable” government we still seem quite some way away from many of the problems being sorted not least Brexit.
One thing has remained strong and stable and that is the interest rate environment in which we operate and in many respects the economy has shown great signs of strength and of course unemployment at an all-time low.
Demand for housing has also remained strong and despite proposed changes to the lettings market and in particular tenant fees, our lettings and management department report that demand remains very strong with rents generally holding in most locations across the UK. This of course is not only good news for existing investors who need to maintain income from their portfolio but also new investors. Whilst the revised stamp duty land tax (SDLT) changes have now been with us for some time, buyers looking for an investment will know that whilst they have to pay a little more tax on their purchase, the prospects of getting a quality tenant and generating a good return for their investments remains strong.
With much talk about interest rates, and so far that’s all it appears to have been, other buyers are taking advantage of a more relaxed mortgage market than that which we experienced some months ago and of course securing fixed rate mortgages in many cases at rates below 2% for at least five years. With all this in mind it is not surprising that the volume of lots that we have both offered and sold has risen compared to the first six months of last year and, capital values although at the slower pace of increase continue to rise in most locations. Possibly the most static being within Greater London that did of course see the biggest rises compared to other geographic locations.
So looking at the words “strong and stable” I think it is generally accepted that price growth in the UK housing market is not strong but considering one or two adjustments that were bound to take place especially with estate agents valuing to sell rather than valuing to get instructions, I do believe we have a much more stable property market for both buyers and sellers. This of course follows through for landlord investors and indeed developers where a more accurate forecast of resale values of their finished development products are now obtainable. Of course for owner/ occupiers this stability of locking in a low interest rate for their mortgage for the next five years or more will be of significant benefit to many and, with much higher loan to value mortgage products available the barrier of saving for a deposit is less restrictive than we have seen in the past. Certainly, those saving for a deposit are less likely to be outpaced by house price growth across the UK.
Considering this, as you page through the catalogue I am sure you will find many opportunities in this “stable” market that offer fantastic returns for investors, decent margins required by developers and value for money for home owners looking to purchase for their own occupation.
As usual we are here to help with your enquiries in the lead up to the auction, legal documents are available to download from our website www.barnardmarcusauctions.co.uk and please do not hesitate to give us a call with any questions you may have.
We look forward to welcoming you to the Grand Connaught Rooms on Tuesday 26th June and take this opportunity to wish you the best of luck with your bidding.