Market Review 2009

Nigel Sellers, Director of Premier Property Search reports…

Market comment...............

Not unsurprisingly, 2009 has turned out to be a very ‘interesting’ year with some clients recognising fairly early on  that they could take advantage of the apathetic and lethargic country house market. It was bound to be a difficult, tough and somewhat of an unpredictable year.   

In fact, at one stage PPS were acting for three clients who had sold in London at the absolute height of the 2008 market and they were sitting in rented accommodation. However, there was a common frustration amongst these creditable buyers when we initially met them to discuss their property requirements:

- Their bank balance looked healthy having sold their property, but it was being hampered with very low interest rates!

- They had genuine anxiety and concerns that their substantial capital was lodged with one of the major financial institutions, but was it safe and secure?

- Our clients were keen to get their money invested back into property,  their lives and their families lives were being put on hold during the worst of the economic downturn

- The outlook in the global financial community was predicted to be gloomy and uncertain for the remainder of 2009

- Our clients all needed up to date market intelligence, they expected to be informed when signs of the market were going to change in their favour, with professional impartial advice to know when best to commit and buy their next property.

Although PPS had some very good transactions during the traditional busy spring period, it was clear that the first six months of 2009 was going to be full of activity with little to show, a lot of trepidation and anxious moments but the early spring market was slow to get going. 

From the house buyers’ perspective, despite the recession the spring time guide prices for some properties up to £5m failed to reflect the downturn in the markets. Vendor’s expectation of the value of their property during early 2009 proved in some instances unrealistic, viewings dwindled and activity generally hit an all-time low. 

Gradually over a number of months many country house prices were reduced to stimulate interest, it had the desired effect with increased viewings and transactions agreed.  However, with significant countries around the world announcing that they were out of recession there were positive signs ahead, City bonuses within the UK were back on the agenda and the appetite for property started to heat up.

PPS clients, particularly those in rented accommodation were able to capitalise on the changing market conditions and the search for their ideal property was firmly back on.

The late summer and early autumn markets continued to show significant signs of a recovery. There was clear evidence that the market for quality houses around the traditional ‘hot spot’ areas outside of London was back. Just as the London property market was the first to be hit by the credit crunch, it has been the first to show signs of recovery. When confidence returns to the London market as it did in July, this is a customary signal that the country market will follow.

An influx of new clients during this period demonstrated to us that there was confidence creeping back into the property market and people no longer wanted to put their lives on hold. 

During the last quarter or 2009 PPS were retained by clients who were looking for homes in a wide and varied geographical location but they all had one criteria in common. The locations were all within the equity rich markets, in prime regional suburbs and prime town house markets which have shown the strongest growth over recent years but were up to 20% down in price from the peak of 2007. 

Despite the continued short supply of good quality properties being openly marketed through the major selling agents, particularly in the country house sector, over 63% of all the houses Premier Property Search have acquired for our clients during this ‘unpredictable’ year were houses NOT on the open market.

In Summary.....

With 2010 being an election year potential sellers and impending buyers have in the past during a General Election held back, if 2010 follows a similar pattern, the first quarter of 2010 could be similar to the last quarter of 2009 with a steady flow of positive activity, and many buyers taking the view that the market has bottomed out and now is the time to buy while mortgage rates remain low and the availability of credit improves. 

If people wanting to sell remain reluctant this will cause a shortage of supply of good quality properties to buy. The market will remain sensitive and prices are unlikely to climb dramatically until early 2011.

Prepared by Nigel Sellers
T: + 44 (0) 1962 793100
E mail sellers@premier-propertysearch.co.uk