Market Review 2007

Nigel Sellers, Director of Premier Property Search reports…

Towards the end of 2006 and through 2007, property market analysts and commentators made many predictions and forecasts, but how precise and accurate did their observations turn out? Indeed, who could have predicted the market as we approach 2008?

We read many reports and reviews from property journalists, selling agents, the media, the government and spokesmen for various financial institutions. They all have something in common, but, more times than not, they are conflicting and contradictory.  There is an inequality of reporting, and few are in a position to make ‘real and factual’ comment on what actually happens in the market place from the ‘buying side of the negotiating table.’

We can report that this has definitely been a year of two contrasting six-month periods, but both possessing one vital common denominator – an imbalance in supply and demand, with the latter outstripping the former for varying reasons.
It was predicted by many that, with city bonuses due to hit record levels in the early part of 2007, there would be a glut of buyers – top-flight bankers, traders and lawyers from the City – creating a frenzy of activity early on in the year. The competition was certainly strong, but there was no real evidence that it was ‘city bonus money’ with which we were competing.

The first half of the year traditionally sees buyers seeking to purchase their next family home in the knowledge that their children have secured a place at their preferred private school. Demand for the best properties in these locations always has an impact on property prices with, in some instances, small premiums having to be paid.
What remains consistent is the profile of client for whom we act – one who is seeking a property in close proximity to good schools, with a location that offers good access to commuter links to the City of London, as well as international and regional airports.

The second half of the trading year definitely reflected a national market slowdown, caused by a number of well documented domestic and international issues, namely:

• The high interest rates in America that had an impact on the property market on both sides of the ‘pond,’ with people unable to get credit, particularly in the US
   
• The introduction of HIPS (Home Information Packs)
   
• Media hype and comment, suppressing the property market
   
• Higher interest rates than planned and predicted in the UK
   
• Government intervention in trying to slow down the property market and introducing proposals for first time buyers, such as interest-free loans for a deposit, cheaper long-term fixed-rate mortgages and lower or no stamp duty on lower priced properties

City and Country Rentals…

Over the last few decades, people in the UK have been persuaded, mainly by our government, to purchase rather than rent their principal family home. (There has, and still remains, an increase in the ‘buy to let’ market.) During 2007, Premier Property Search has represented a wide number of international ex-pat clients who are predominantly on fixed-term employment contracts and need long-term rental accommodation.
These company employees and their families are mostly from the Financial, Telecommunications and Engineering sectors and come to the UK from all over the world.
Both the private and corporate rental sector of our business continues to thrive and plays a vitally important role within the business as a whole, underpinning and complementing the private acquisition client division.

The outlook for 2008…

Within Southern England, the market currently is characterised by an imbalance of supply and demand for the more sought-after locations and properties. Despite many factors that have the potential to influence and affect a segmented property market, it is envisaged that nervousness, apprehension and trepidation will continue in the minds of the vendors. However, we still anticipate that the demand for quality houses in 2008 will be as strong as in recent years.

If you would like to find out more about how we can help you secure your perfect property Contact Us and we would be delighted to talk to you about our services.