The last week in May has seen our buyer database at it's highest level since Spring 2014 and 27% above the average for 2015-to-date. The surge in buyer registrations seems to be down to 3 main factors: 1) Increased optimism following the decisive general election result, 2) the change to pension rules which have allowed thousands to release funds from their pension pots and invest as they choose, and 3) the traditional spring "bounce".
Current 'time-on-the-market' has hovered around 4-5 weeks over the past few months, however with the rate of new properties coming to the market failing to keep pace with the increase in buyer demand we predict that this telling metric is likely to come down over the coming months. Given the huge price increases that we experienced in 2013/2014 (+30% in Clapham, Streatham and Camberwell; Up to +50% in Brixton) demand will need to rise even further before we expect to see upward pressure on prices. Over the coming months we will keep you up to date on any market movement and we forecast that if the average time-on-market starts to approach 2-weeks then prices will start to climb.
The rental market was unseasonably strong in the first 4-months of the year and there are still growing number of tenants looking to move to Brixton, with Camberwell and Streatham benefiting from the overflow of demand. Average rents during this period were up 8.8% compared to the same period in 2014. During April and May tenant registrations dropped by around a third however we put this down to the fact that the rental price growth has meant that many tenants have been able to secure better deals by renewing their tenancies.
With 20 registered tenants for every available property demand is still comfortably sufficient to protect landlords from any downward pressure on rental prices and we predict that from July tenant registrations will pick up again as a result of the cyclical demand spike over the Summer months.
Thank you for reading and if you have any questions about the local market or would like an updated valuation of your property then please contact us - click here for the contact details of your local branch. Next time our 'Market News' will focus on local investment opportunities.
The local rental market is showing signs of tenant demand outstripping the current property supply. Demand has quietened since early spring as some tenants consider purchasing, but the market is still currently weighted in favour of landlords and the expected summer surge in tenant demand suggests that supply will be squeezed further by the summer and rents could climb further as a result.
After a slow start to 2015, new buyer registrations are on the rise and the average time on the market is falling. Properties in prime locations and those that have been renovated to a high standard are performing particularly well. The post-election bounce in the housing market plus the changes to pension rules which allow early withdrawal of funds have kick-started the market and we expect to see a busy Q3/Q4 in 2015 with the speed of the market picking up further as the year goes on.
If you think you could benefit from any of these services we would be happy to hear from you. Our Brixton office primarily serves the SW2, SW9, SW4 and SW11 postcode areas, our Streatham office deals with property in SW16, SW17, SE27, CR4 and CR7, and our Camberwell office handles property in SE5, SE24, SE15, SE17 and SE21. Click here for full contact details of your local branch.
Brixton Estate Agents: 91 Acre Lane, SW2 5TU / 02073267450 / firstname.lastname@example.org
Streatham Estate Agents: 73 Mitcham Lane, SW16 6LY / 02086967900 / email@example.com
Camberwell Estate Agents: 8 Camberwell Green, SE5 7AF / 02073587979 / firstname.lastname@example.org
West Norwood Estate Agents: 471-473 Norwood Road SE27 9DJ / 02086559000 / email@example.com
Registered Office Address: Beresford Residential Limited, The Old Vicarage, Ston Easton, BA3 4DN. Registered Number 7052432 England and Wales. VAT Number 982 6174 88