The property market continues to move; and the North West is looking good

This year has already seen major changes in the world of property throughout the UK. A pattern is emerging that is indicative of a definite North-South divide and it is spelling encouraging news for the North.

Although in comparison with property prices countrywide, homes still cost more generally, in the South East of England – London fares well in particular – values fell by 1.9% in the capital, in the year to March. Yet they increased by as much as 3.6% in Yorkshire and Humberside, the Office for National Statistics (ONS) confirmed.

According to a recent BBC report, Lucy Pendleton, founder director of estate agents James Pendleton, confirmed: “A hot property market in the Midlands and North West is propping up the UK's overall picture…”  

With confidence high in these areas, the future is looking bright. Rightmove has stated that prospective buyers in the North West – among a small number of other areas – are being confronted with all-time highs for the average price of property coming to market.

To corroborate this, This is Money has reported that according to a recent study, “81% of UK homeowners expect house prices to grow in the next six months” and that those in the North West are among the most optimistic.

Estate agency moves

With the announcement earlier this year of office closures by major player LSL Property Services, it is clear that the market is changing, in general. We learned that instead of 308 owned Your Move and Reeds Rains branches, there would be 280; 144 of these to be owned “keystone” branches with approximately 136 being franchised.

While Foxtons and other estate agencies have made recent public announcements on details of branch closure programmes, Countrywide hasn’t done so, though there continues to be much speculation.

In March, Peter Long, chairman of Countrywide – which trades under various estate agent brands, including Bairstow Eves, Bridgfords, Hamptons, John D Wood and Mann – did confirm: “2018 was undoubtedly one of the most challenging years that the group has faced.”

So, is it all down to Brexit? Or, as we like to call it: Brexiety?

Uncertainty will always play a part in the property market. And the one thing we are certain of is uncertainty.

That said, we feel there are other factors too. For example, there has been a plethora of ‘online agents’ over recent years. It did seem for a while that Purple Bricks may even take over the market; they had made such an impact. However, at the time of writing, Purple Bricks are reportedly experiencing “share turmoil”; so, time will tell on what actions, if any, they will take.

Then, of course, there was the folding of Emoov and Tepilo. Which begs the question: are online agents working? We feel that the traditional role of the estate agent has proven invaluable. As we navigate the choppy waters of that uncertainty, our understanding is that movers tend to look to those in the know for advice. It’s the age-old proverb: people buy people.

That said, it’s going to be an interesting time, for sure. Like so many, we’re looking forward to seeing how things pan out over the coming months.

July 2019