Everybody’s talking: separating the speculation from the fact.

Ah December 2014. The end of the calendar year and a time for property experts, journalists and agents to gaze into their crystal ball and predict just what might happen in 2015. There’s so much hyperbole out there that it’s hard to separate the fiction from the fact, especially when you’re looking for some key stats or messages that you can pass on to clients.

One thing that is set in stone is the General Election. Most commentators believe the property market will effectively go ‘on hold’ before May 2015, with a blanket of ‘uncertainty’ casting a shadow over home movers. Really? Let’s look at the evidence. The Chancellor has gone all guns blazing in the run up to the election, announcing his stamp duty reform and then the Starter Home initiative. When you combine this with the ongoing Help to Buy schemes, historically low interest rates and mortgages rates hovering around 2%, the next six months are actually shaping up to be great for home buyers – including buy-to-let investors looking to expand their portfolios.

In addition, Labour – should they win – are set to radically change the private rental sector with the scrapping of tenant fees, a cap on rent rises and three year tenancies becoming the norm. It is thought, however, that tenancy arrangements agreed before the General Election will stand so just how many landlords and property managers will look to seal deals and sign up tenants before May?

How about interest rates? The Bank of England’s Mark Carney is the rhetoric king. So far he has manipulated the markets with mere talk of interest rates going up but there has actually been no budging from the 0.5% low under his tenure as Governor. If you’re advising investors purchasing buy-to-lets with mortgages, check the bank swap rates with IFAs first. It’s these rates than keep repayments and new products affordable.

And how can I blog about speculation without mentioning house prices, monthly rents and an apparent bubble about to burst? The chatter is incessant: rents are climbing, rents are falling, supply is limited, house prices are tumbling, mortgage approvals are stalling etc. It’s time to look local. Experts that come in with sweeping facts and figures are usually quoting from a national stance and none of it is applicable to agents on the high street looking after a tight geographical patch. Look at local trends, analyse your own historical data, read about news affecting your area and draw your own conclusions. If 2015 is the right time for your clients to move home or invest in a buy-to-let, and their circumstances have been verified, then that should be your guide.

* Simon Duce is the Managing Director of the ARPM Outsourced Lettings Support

 

ARPM

Simon Duce is the Founder and Managing Director of ARPM Outsourced Lettings Support - a business designed to help small and start-up letting agents/property managers offer a full suite of property management and tenancy administration services through outsourcing.

You May Also Enjoy

Breaking News

Breaking Property News – 28/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Birchgrove and Hybr launch intergenerational living scheme A unique partnership will see students, key workers and retirees live together at new north London retirement development. Birchgrove, the UK’s leading provider of rented retirement homes, and Hybr, the UK’s leading student letting platform, today announce an industry-first…
Read More
Estate Agent Talk

Benefits Of Choosing Roger Bates Properties

Roger Bates Properties stands out as a prominent real estate agency that offers a myriad of benefits to individuals seeking to buy, sell, or invest in real estate. With a stellar reputation and a commitment to excellence, choosing Roger Bates Properties can prove to be a decision that yields numerous advantages. 1. Experience and Expertise…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 28/02/24

The average 5-year fixed mortgage rate is now 4.80%, up from 4.59% a year ago The average 2-year fixed mortgage rate is now 5.15%, up from 4.92% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.73%, up from 4.64% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.30%, up from 4.25% a year ago The average monthly mortgage payment on a…
Read More
Love or Hate Rightmove
Breaking News

Rightmove calls for stamp duty reform with only 4% of London homes exempt

Ahead of the Spring Budget on March 6th, the UK’s biggest property website Rightmove suggests three policy reforms that could help people moving home: A reform of stamp duty to consider regional property price variations: Only 4% of homes in London are stamp duty exempt for all buyers, compared to 71% in the North East Less than…
Read More
Breaking News

Breaking Property News – 27/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Alto reveals ‘next generation’ of Lettings Progression Alto, software for estate agents and part of Houseful, has revealed further information about the improvements being rolled out in 2024 to drive a step change in business efficiency for letting agents. Leading the way is a…
Read More
Home and Living

The Versatility of Parquet Flooring in Contemporary Homes

What comes into your mind when you hear about parquet flooring? Most probably Victorian era, historic estates, grand ballrooms, and grand mansions but what if I tell you that the parquet flooring has redefined itself with warmth, texture, and classic elegance? Parquet flooring in contemporary homes is a delight to the eyes because when you…
Read More