2010 Property market update

This is the first report detailing the trends and influences affecting the Southend on Sea property market. Future reports will be issued on a regular basis and can be viewed at www.trustintudor.co.uk or to receive your hard copy contact Alan Kirkman at Tudor Estates.
Firstly I want to set our predictions for the coming year in context by briefly looking back over 2009.

2009

By the start of the year the volume of property sales for the Southend area had been nearly halved, compared to the average volume for the previous 5 years to approximately 2,500 transactions ( Land registry figures Jan 08 – Dec 08 )
2009 was to prove to be a year of 2 halves, at the kick off, January saw a short flurry of sales before the reality of the property recession hit, with a marked slow down in activity.
The period from January to June saw the average house price fall from £152,681 to £137,522
So it is surprising that by the time the 2nd half started there was a quick reversal of this trend with far higher activity levels and sales returning quite strongly. By November the average price had risen to £145,286.
The same trend was reported right across Essex and the UK with only slight regional variations, by our associate TEAM offices.
But there was to be no extra time called as both sellers and buyers took an early bath with the seasonal slow down coming unexpectedly early, right at the beginning of December.
So what should we look forward to, apart from the world cup as we pack away the turkey and head into 2010?

2010

Sporting events and general elections may have an effect later in the year but currently we are experiencing increased market activity.
Astute sellers are already placing their properties on the market in the anticipation that pent up demand from potential purchasers who have been frustrated by the lack of homes coming onto the market will drive activity higher.
This has been further helped with the re-emergence of more realistic mortgages. With one major institution announcing just before Christmas that they are combating the effects of higher stamp duty by increasing the amount of cash back available to help off set the affects.
Several other lenders are also bringing out more favourable mortgage products for first time buyers.
Despite other possible negative influences such as higher unemployment and probable interest rate rises, the housing market is likely to still perform well over the coming 12 months.
This is because these possible negative factors are unlikely to outweigh the fundamentally competitive UK property market, as demand still out strips supply at the moment.
Several banks and institutions have also been engaged in the annual game of guess the property price increase, with predictions varying anything from 2 to 10% by this time next year.
At Tudor we are being realistic in our predictions, expecting a modest increase in prices but a far more stable market.
We are already experiencing higher levels of activity from buyer and sellers which started during the Christmas, New Year break.
Consumer confidence appears to be rising with the clients we are talking to.
We are expecting the first three months of the year to be good for both buyers and sellers, with buyers benefiting from a greater choice of property and sellers sustained activity.
Crucially though choosing the right method of sale and presenting properties correctly will be key, in achieving success.

Unique Southend market factors

Another promising sign of confidence returning to the market comes from the growing interest from developers in land for sale both with and without planning consent at auction.
This may well be due to the fact Southend has other factors that are unique to its market place that are having a positive influence on it.
These include the airport expansion plan with visible signs of activity as the new railway station build progresses.
The continued growth of the university and the opening of the Park Inn hotel both of which are transforming the town centre.
New funding for projects such as the Prince of Prittlewell museum and the Priory.
Development of the infrastructure including the improved traffic flow at Progress road and improvements to Victoria circus.
These are seen as positive signs of growth in the town by the investors we are in contact with.


Summary

2010 is likely to see increasing levels of activity and modest price increases.
With investors positioning themselves for the development opportunities that are to come.
The domestic market is likely to benefit from better mortgage products, the lack of which, has been the largest hurdle to the market recovery so far. This in turn will encourage more people to place their properties on the market.

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