You would have thought that this would be a backdrop more for a ‘depression’ rather than a recession. How wrong could the pundits be? With an unprecedented amount of quantitative easing to help inflate the economy, together with government handouts, by way of business rates holidays and the furlough scheme, in combination with 300-year low interest/mortgage rates, these in aggregate, have created a ‘perfect storm’ for residential property.
The bellwether of economic growth ie the capital markets, both in the UK and USA, are scaling new heights, which is all good news for the investor and the consumer.
Now that the Brexit issue is behind us and there is a stable political outlook for the foreseeable future, market sentiment, as it relates to the residential property sector from June 2020 onwards, has been rising consistently. So much so, that today we may be looking at the most effervescent market conditions that we have seen in the last 6-7 years. It couldn’t have come one moment too soon, if you bear in mind that as value rises, debt shrinks in relation to equity.
At one time, the price range between £ 1million and £ 3million last year, became so active that a new property coming onto the market, within our catchment area, could be sold within a fortnight, at a good price. As a result, we sold about 12-13 properties (which, believe it or not, is a huge number) worth up to £ 50million, such that today there are very few properties available in this price range.
Last year we had a stock overhang of properties between £ 6million and £ 12million, but as a result of significant sales by Glentree, (4 in Compton Avenue, 2 in Sheldon Avenue, 2 in Winnington Road) which total more than £ 70million, we are also short of properties for sale, in this range.
Under the most perverse circumstances and against all reason, the “buyers’ market” that once was, has morphed into a “sellers’ market”.
Therefore, if you are thinking of moving, this may be an excellent time to either trade-up or down, depending on your needs and circumstances.
‘The word on the street’ is that residential property prices are inflating as we speak and over the year, we should see growth of between 5% and 10%.
In this latest edition of Glentree Magazine, we have tried to give you a taste of some of the finer examples of our portfolio of fine homes for sale and to rent, together with examples of properties that we have sold recently.
Forgive us for reminding you that we are the longest established specialist agent in northwest London, under the same management for over 45 years, and we are “a rare blend of entrepreneurial verve and institutional reliability.”
If you have not contacted us before, I think you will be surprised by the welcome you will receive.
Trevor S Abrahmsohn
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Glentree have a strong sense of community so working closely with local businesses goes hand-in-hand with that. We are proud to have these companies on board… below are just a handful of our partners.