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Here in the office, a lot of people ask me about supposed ‘golden rules’ they should abide by to get a quick sale. I often hear comments like ‘catch the property season’, ‘spend money to make money’ and ‘price high and accept low’. Unfortunately, achieving the optimum sale requires you to navigate highly changeable market conditions.
The local market in E14 changes a lot year-on-year. As the chart above shows, the average price of properties on the market fluctuates a lot more than you might think. But unweighted overall average prices only tell part of the story - sales rates are the thermometer we use to measure the temperature of the market.
So what are active buyers looking for right now? We all enjoy some peace and quiet, no one is denying that. But the idea that property in close proximity to public transport hubs like train stations are harder to sell just isn't true. In fact, if you can hear the trains from your home, that means you are located nearby a station - and properties close to a station are always in high demand.
There are no hard-and-fast rules to how to sell your property - the tone of the market is ever changing and its important you work with a good local agent with their finger on the pulse. If you have any more questions regarding property in E14 or are thinking of selling your home and buying a new one, don't hesitate to get in touch with me.
Thanks for reading.
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We are proud to announce that the Landmark team won the Innovation award at the Wharf property awards 2017. This award was based on our innovative approach to both agency and our marketing.
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I don't know about you, but my commute into the office was a very important factor for me when I bought my last house. While the ever-increasing use of technology has made it easier to work from home, most people living in Britain still take part in the ‘daily grind', with a staggering three-million commuters now spending more than two hours to get to work.
But what does the commuting landscape look like in E14? The first thing we know is that most people have a commute of less than 10km (71.9 per cent of the total work force). This is the case for most of the UK and probably won’t come as a massive surprise. The second most common commute is 10km to 29km which accounts for 9.2 per cent of the total workforce in our area.
Those thinking of buying a property in E14 will want to consider its proximity to local transport. However, with house prices sitting 15 per cent lower for every five miles you move away from a station, the temptation to find a home further afield is certainly strong. The prospect of getting more bang for your buck will make sense for less frequent commuters.
Longer journeys won't be disappearing anytime soon, but we do expect the number of commutes in England and Wales to reduce slightly over the next five years with more virtual offices and technologies like Google Hangouts and Skype. Why don't you pop into my office so I can advise you on all things property, whether buying, selling or renting?
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The, obvious, hot question that many homeowners have right now centres around the forthcoming general election and how it may effect their homes value. The best way to tell the future is to look at the past.
I have looked over the last five general elections and analysed in detail what happened to the property market on the lead up to and after each general election. Some very interesting information has come to light.
Of the last five general elections (1997, 2001, 2005, 2010 and 2015), the elections that weren’t certain were the last two (2010 with the coalition and 2015 with the unexpected Tory majority). Therefore, I wanted to compare what happened to the number of houses sold and the prices achieved in 1997, 2001 and 2005 when Tony Blair was guaranteed to be elected/re-elected versus the last knife edge uncertain votes of 2010 and 2015.
Look at the first graph below comparing the number of properties sold and the dates of the general elections:
It is clear, looking at the number of monthly transactions (the blue line), there is a certain rhythm or seasonality to the housing market. That rhythm/seasonality has never changed since 1995 (seasonality meaning the periodic fluctuations that occur regularly based on a season - i.e. you can see how the number of properties sold dips around Christmas, rises in Spring and Summer and drops again at the end of the year).
To remove that seasonality, I have introduced the red line. The red line is a 12 month ‘moving average’ trend line which enables us to look at the de-seasonalised housing transaction numbers, whilst the yellow arrows denote the times of the general elections. It is clear to see that after the 1997, 2001 and 2005 elections, there was significant uplift in number of households sold, whilst in 2010 and 2015, there was slight drop in house transactions (i.e. number of properties sold).
Next, I wanted to consider what happened to property prices. In the graph below, I have used that same 12-month average, housing transactions numbers (in red) and yellow arrows for the dates of the general elections but this time compared that to what happened to property values (pink line).
It is quite clear none of the general elections had any effect on the property values. Also, the timescales between the calling of the election and the date itself also means that any property buyer’s indecisiveness and indecision before the election will have less of an impact on the market.
So finally, what does this mean for the landlords of the private rented properties within Tower Hamlets and beyond? Well, as I have discussed in previous articles (and just as relevant for homeowners as well) property value growth in E14, E16 and E6 may be more subdued in the coming few years for reasons other than the general election. The growth of rents has taken a slight hit in the last few months as there has been a slight over supply of rental property in Canary Wharf making it imperative that landlords are realistic with their market rents. But, in the long term, as the younger generation still choose to rent rather than buy ... the prospects, even with the changes in taxation, mean investing in buy-to-let still looks a good bet.
In the meantime, why not try out my free and instant property valuation tool. Pop in your post code and within 58 seconds you will receive a current rental and sales value for any East London property address - try it now.
Thanks so much for reading.