Like the weather, the property market has shown increasing signs of improvement in the period since the General Election with, as expected, confidence increasing as people are becoming more prepared to commit to long term plans.
As I write there are a number of incredible looking mortgage deals available which provide long term, fixed, low interest loans and will allow buyers to commit to purchasing on a stable financial basis.
The best looking schemes are only available to, what lenders see as, the lowest risk borrowers, but, even so, there has never been a better time for many to borrow.
The lettings market has also been able to move forward now that any fears over rent controls have been lifted and we have seen an increase in the number of landlords looking to grow their portfolios and also new investors entering the market.
The Queen’s Speech saw the Government announce a number of legislative proposals which will affect the property market. These include the intention to build 200,000 new starter homes and provide a discount of 20% to buyers under the age of forty and an extension to the right to buy scheme to allow housing association tenants to purchase their own homes.
They also signalled the intention to fully implement the Immigration Act and ensure that all tenants have a “right to reside” before they can take up a tenancy. The Government has also said it intends to licence landlords in an effort to remove the unscrupulous fringe.
Of course, the potential devil will be in the detail of any legislation and we shall be watching with intense interest in the weeks and months ahead and keeping you informed.
As we enter the summer period we expect to see the market hot up with demand outstripping supply and prices staying positive.
Affordability is vital and therefore I do not expect to see the market overheat as this is likely to be a restraining factor in the supply and demand imbalance.
A number of recent reports have indicated that the market is likely to remain strong for several years ahead and a Director of house-builder Taylor Wimpey suggested the possibility of sustained price growth for fifteen years!
My prognosis for the remainder of 2015 and beyond is certainly therefore positive and I feel that an improving economy will also lead to greater investment in the supply side of the equation over the next few years with more property being built for both home ownership and the private and social rental sectors.
Michael Johnson
