Devon Property Market latest insights are mixed right now, but expected to show signs of more stability in 6 months!
The latest Property Insights survey was extended to a wider audience of property professionals in January. We extended the survey beyond estate agents, to include all of those involved in the property buying process, which include, solicitors, surveyors, mortgage advisors, property investors and more. By doing so, Property Insights intends to get a wider perspective of the property market.
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At the moment we collect responses from all property professionals which offers a broad and unique perspective. In the future, we will be segmenting responses to see if there are differences between the professional’s views! This is all designed to give you an in-depth understanding of the property market and in particular ‘your local market’!
However, there is still a large proportion (44%) who believe house prices in Devon are coming down. This clearly indicates a mixed consensus in terms of the direction of the market and is most probably reflected in the uncertainty surrounding Brexit.
House Price Stability
The results of the survey show a more positive sentiment in the short term.
This is a significant increase from the current sentiment of 47% and suggests there is positivity around the corner.
This sentiment was backed up in an interview with David Edwards from John Smales Estate Agents, who said; “at the moment, it’s all about getting the price right. If a property is priced correctly there are plenty of buyers, but if it’s not, then it often won’t sell”. This suggests the market is price sensitive, but there is still a strong demand for the right property in the right location. As David Edwards said; “people will always want to move to Devon”.
When it comes to the impact of additional stamp duty for property investors, the consensus is clear and has been quite consistent over the last 3 months. The vast majority (84%) stated it has had a negative impact on property investors. This compares to 87% in the October 2018 survey.
Clearly, the stamp duty and other tax changes are having an impact on the investor market which I expected, but despite this, we are seeing a big upturn in the number of professional landlords. The changes seem to have taken out the casual property investor and left more opportunity for the professional landlords despite the tax changes.
It has surprised me how many more professional landlords we have been helping in the last 12 months and there isn’t any sign of this slowing down. More often than not, they have more complex requirements which might include structuring buy to lets into limited companies or dealing with complex portfolio’s.
The professional property investors clearly have a strong appetite to find the right deal and opportunity. For me, this indicates that the market is still good, but needs to be tempered with realistic pricing by sellers. Overall I see this confidence as a good indicator to the future direction of the market. Click To Tweet
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