Properties are beginning to sell
PUBLISHED: 09:43 20 December 2010 | UPDATED: 15:49 20 February 2013
Bill Jackson, who founded Jackson International, has been practising in Herefordshire for over 40 years and has built up the company with a staff of 15 highly trained professionals covering Herefordshire and the Border Counties. An equestrian divi...
Bill Jackson, who founded Jackson International, has been practising in Herefordshire for over 40 years and has built up the company with a staff of 15 highly trained professionals covering Herefordshire and the Border Counties. An equestrian division operating out of Chester covers the whole country, and there is an associate London office. Here is his view of the state of the market.
The markets from September 2007 until the end of 2008 saw a severe adjustment, with a downturn of between 15 - 25% to date. However, activity began to increase at the end of 2008 and into 2009 as the impact of the downturn has meant that property prices are once again becoming affordable.
The general consensus in the property industry is that the market, especially for residential property, is beginning to move again. It is anticipated that there could be a further 10 - 15% drop in 2009. This is good news for first time buyers, and once again we are seeing them enquiring about the possibility of owning their own house. Although mortgages are difficult to obtain, with low interest rates we are seeing some of the traditional building societies and banks now beginning to offer rates unheard of only a few years ago; and it is felt that by the middle to the latter part of 2009, mortgage money will start to be freed up as it comes through the banking system.
The message is that if you price realistically, then the market is beginning to move; and if you are buying as well as selling, the downturn in the market levels itself out. At least for first time purchasers there is a chance of climbing on to the property ladder.
With regard to agricultural land and equestrian properties, the price of land has held up, especially for small pony paddocks, as can be seen from our auction results. Also, period properties with land, especially for equestrian purposes, are still in demand and clients with cash are still around looking for the right property.
Another successful part of our business has been the residential lettings department which, due to the downturn in the market, has been extremely busy with prices holding up for one or two bed houses within walking distance of the city centre, especially with parking spaces. Country houses costing over a 1,000 per month have proved more difficult to rent out as there is a wide choice, even though the market is showing signs of slowing down as people opt to rent if they cannot sell at the price they are seeking.
The recession may be here but so is a lack of confidence in the banking system. Investors and people with property assets are realising that their cash is safer in houses, which are long term investments. Looking to the future - say 2012 - bearing in mind the effects of the three Ps - Population, Planning and Prosperity - house prices will no doubt once again start to rise and those who purchase in 2009 may feel that they had a bargain.
Lastly, our international side has been extremely slow over the past two years, with the recession and the pound's low value against the euro and dollar. However the tip is to look at Spain at the end of 2009/10. The pound could have strengthened against the euro and there will be some marvellous bargains to be had in a country which still has a great climate and easy access.
45 Bridge St. Hereford. HR4 9DG