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LOCAL PROPERTY MARKET

IT’S BEEN QUITE A FEW YEARS SINCE I WROTE THIS COLUMN IN ANOTHER LOCAL PAPER AND A LOT OF WATER HAS, AS THEY SAY, FLOWED UNDER THE BRIDGE SINCE THEN.

COINCIDENTALY IT BEGAN MIDWAY THROUGH THE LAST PROPERTY RECESSION IN THE EARLY 1990’S.

IT CAME ABOUT DUE TO THE FACT THAT LOCAL PEOPLE WERE GREATLY CONFUSED REGARDING THE STATE OF THE PROPERTY MARKET AT THAT TIME, OWING TO HEARING CONFLICTING AND IN MANY CASES TOTALLY CONTRADICTORY REPORTS IN THE NATIONAL MEDIA.

IT IS MY CONTENTION THAT THE TERM “PROPERTY MARKET” IS IN ITSELF AN ANOMALLY, FOR THERE IS NO SINGLE PROPERTY MARKET, THERE IS IN FACT A SERIES OF MICRO MARKETS.

THEREFORE IN ORDER TO INFORM LOCAL PEOPLE ACCURATELY IT IS IMPORTANT TO HAVE SOMEONE LIKE MYSELF TO COMMENT ON THE MOVEMENT OF LOCAL PROPERTY IN OUR LOCAL PROPERTY MARKET.

SO WHERE DO I START?

WHY NOT START AT THE VERY BEGINNING. BELIEVE IT OR NOT THE ABSOLUTE PEAK OF OUR LOCAL PROPERTY MARKET WAS WAY BACK IN MAY 2003. IT WAS AT THIS TIME THAT THE MAJORITY OF LOCAL HOMES WERE BEING FOUGHT OVER, GAZUMPING WAS RIFE AND RECORD PRICES WERE BEING ACHIEVED.

THERE WAS IN FACT A SERIOUS COOLING OFF OF PRICES IN OCTOBER 2004 WHICH CONTINUED THROUGH 2005 AND ONLY STARTED PICKING UP AGAIN IN 2006, CLIMBING BACK TO 2003 PRICES IN MAY / JUNE 2007. AFTERWHICH, AS THEY SAY, THE REST IS HISTORY.

SO THAT’S THE HISTORY, WHAT OF THE PRESENT?

THERE IS NO HIDING THE FACT THAT IT IS STILL A DIFFICULT MARKET LOCALLY. HOWEVER THERE ARE DEFINITE SIGNS OF IMPROVEMENT IN, WHAT WE CALL, THE LOWER END OF THE MARKET THAT IS BETWEEN £300,000 AND £900,000.

THIS IS PRIMARILY DUE TO BOTH THE EASING OF THE MORTGAGE MARKET AND THE LACK OF SUPPLY OF QUALITY HOMES. OUR OFFICE HAS BEEN SUCCESSFUL IN AGREEING SEVERAL DEALS IN THIS PRICE RANGE RECENTLY AND THERE HAVE EVEN BEEN A FEW INSTANCES WHERE COMPETITION HAS DRIVEN THE PRICE ABOVE THE FIGURE THAT WAS BEING QUOTED.

SO NO “BUYER’S MARKET” HERE!

WHEN LOOKING AT THE MARKET OF ONE MILLION POUNDS AND ABOVE IT WEAKENS CONSIDERABLY THE HIGHER UP THE PRICE RANGE YOU GO, WITH PROPERTY AT THE VERY TOP LEVELS STILL SELLING BUT IN LOWER NUMBERS AND AT FIGURES WELL BELOW THE “HIGH” OF 2007

IT’S MY VIEW THAT A REASONABLE “READY RECKONER” GUIDE TO VALUES IN EXCESS OF A MILLION POUNDS AT THIS PRESENT TIME IS, IN THE MAJORITY OF CASES, BACK TO THE 2004/2005 VALUES.

THERE ARE EXCEPTIONS OF COURSE AND THESE LIE MAINLY AROUND THE MOST SOUGHT AFTER HOMES IN THE PRIME LOCATIONS.

I INTEND THIS TO BE A REGULAR FEATURE OF “IN” MAGAZINE AND NEXT MONTH I WILL BE IDENTIFYING THE AREAS OFFERING THE BEST VALUE AND THE “MOST WANTED” LOCATIONS.

IN THE MEANTIME IF YOU WOULD LIKE TO SPEAK TO ME REGARDING YOUR INDIVIDUAL PROPERTY DON’T HESITATE TO CALL.

Phillip Leigh is the Principal of Phillip Leigh Associates of Chigwell and Loughton established by him in 1966.Tel 020 8501 2424.E.Mail Phillip@phillipleigh.com
www.phillipleigh.com