At this time of year, every other question I am asked is "So what do you think will happen in the property market 2010?" Like you, I don't have a crystal ball, so my predictions are based on my opinion of the trends I have seen growing in 2009 and looking at the medium to long term changes in the industry.
So, SurreyLets Sally predicts....
1) More sales stock will come onto the Market in spring 2010 inspired by the reports of property price increases in Autumn 2009. Expectations will be high.
2) As more "Reluctant Landlords" reach the break clauses in their Agreements, they will be putting the property on the market for sale. The over supply of properties that forced rentals to drop will be no longer and the lettings market could see a shortage of rental stock pushing the prices up, though not to the peaks of 2007
3)The increases we saw in sales prices in the Autumn of 2009 will show this was a blip in statistics and whilst properties will sell, the prices will increase slowly and steadily from the bottom of the market, but the increases from Autumn that were borne out of a shortage of supply will not achieved.
4) Long Term rentals will continue to grow in popularity and be viewed as a sound long term plan as an alternative to home ownership.
5) The Buy to Let market will be a growth area with many first time Landlords entering the arena. Most first time Landlords will be people in their 40's who having sold their home will plough the equity into a small portfolio and opt themselves for a long term rental as part of a wealth management scheme. This should feed the rental market with much needed stick in the flats and family homes market.
6) The Corporate Lettings Market will continue to see a decline in corporate Lets as several companies are paying home allowances instead. Once in charge of their spending families will be more prudent in negotiation for properties and this will continue to affect rental prices down in the 5 - 8K pcm market. Whilst several companies are now recruiting from overseas, the higher budgets are in short supply.
As mentioned at the beginning of the blog - this is just my opinion based on trends I am seeing in the Surrey Market place.
I would love to hear your comments and predictions for 2010..........
My prediction is that buyers will be scarce in 2010. Many buyers will be holding back expecting prices to fall further. There are far too many uncertainties - job losses and redundancies will increase in 2010 and there will be affordability issues. There will still be a strong market for properties for sale at auction. More and more tenants will default on their rent payments causing further misery to landlords.
ReplyDeleteThanks Brightmove
ReplyDeleteJob losses and redundancies will push up the amount of rental defaulters. However, a responsible letting agent should be advising landlords to take out a rental indemnity insurance with legal cot insurance. Its readily available and affordable. IMHO its one corner Landlords should not cut.
Auction will indeed see and increase and that's where I think many first time Buy to Let Landlords will be snapping up a good deal for a new portfolio.
Births, Deaths, Divorce and marriage where families merge will see the sales market continue to sell, and at the end of the day the "sale" vs "purchase" price is all relative to this sector.
Thanks for commenting - Sally (SurreyLets Ltd)