As
I have mentioned a number times in my local property market blog, with not
enough new-build properties being built in Southampton and the surrounding area
to keep up with demand for homes to live in (be that tenants or homebuyers), it’s
good to know more Southampton home sellers are putting their properties on to
the market than a year ago.
At
the start of 2007 there were 2,619 properties for sale in Southampton but by July
2008, when the credit crunch was really beginning to bite, that number had
risen to 4,290 properties on the market at a time when demand was at an
all-time low, thus creating an imbalance in the local property market.
Basic
economics dictates that if there is too much supply of something and demand is
poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In
fact, house prices dropped between 15% and 20% depending on the type of Southampton
property between the end of 2007 and Spring 2009.
However,
over the last five years, we have seen a gradual decrease in the supply of
properties coming onto the market for sale with demand remaining steady, meaning Southampton property prices have remained
robust. A stable housing market is one of
the foundations of a successful British economy, as it’s all about getting the healthy
balance of buyer demand with a good supply of properties. Nevertheless, if you
had asked me a couple of years ago, I would have said we were beginning to see
there was in fact NOT enough properties coming on to the market for sale …
meaning in certain sectors of the Southampton property market, house prices
were overheating because of this lack of supply.
So,
it is pleasing to note, looking at the recent numbers …
There are 10% more properties
for sale in Southampton today than a year ago
There
were 1,294 properties for sale 12 months ago, and today that stands at 1,421. It
doesn’t sound a lot, yet this is a small step in the right direction to a more
stable property market.
Even
better news, since the Chancellor announced the stamp duty rule changes for
first time buyers (FTB), my fellow agents in Southampton say that the number of
FTB’s registering on the majority of agent’s books has increased year on year.
That has still to follow through into more FTB’s buying their first home,
however, with the heightened levels of confidence being demonstrated by both Southampton
house sellers and potential house buyers, I do foresee the Southampton Property
Market will show steady yet sustained improvement during the first half of 2018.
What does this mean for Southampton landlords or those
considering dipping their toe into the buy to let market for the first time? Landlords
will need to keep improving their properties to ensure they get the best
tenants. It is true that demand amongst FTB’s is increasing, albeit from a low
base. Even with the new landlord tax rules, buy to let in Southampton still looks a good investment, providing Southampton
landlords with a good income at a time of low interest rates and a roller
coaster stock market.
If you are thinking
of investing in bricks and mortar in Southampton, it is important to do things
correctly as making money won’t be as easy as it has been over the last twenty years. With a greater number of properties on the
market .. comes greater choice. Don’t buy the first thing you see, buy with
your head as well as your heart … and don’t forget the first rule of Buy To Let
Investment …..
I will tell you that 1st rule in a couple of
weeks!
If you are looking for an agent that is well established, professional andcommunicative, then contact us to find out how we can get the best out of your investment property.
Email me on brian.linehan@belvoirlettings.com or call on 023 8001 8222.
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Thanks for sharing!
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