Increase in Lettings Valuations

Fri 16 August 2019

Kidderminster Office is always a hub of activity with sales, lettings and block management all operating under one roof. Following Easter the activity levels in sales have substantially increased. Offers and viewing activity remains strong specifically in the bracket £150,000 - £300,000 where we are seeing property come to the market and turn round quickly.

The mailing list is strong with a high percentage of proceedable buyers currently sitting at 70%. The applicants in rented accommodation have grown substantially. Due to the shortage of stock over the last 18 months many applicants have gone into rented until they locate the right property.

High percentage of applicants on our mailing list are from West Midlands and beyond looking to move to the area especially to the rural locations.

Speaking with Gemma in our lettings department she notes that they have been inundated with new business enquiries. The diaries have been flat out conducting lettings valuations for new clients. Could this be as a result to the changes in legislation which hit the lettings sector in June? one key change being the Tenant fee ban where agents are no longer able to charge tenants fees for referencing or administration. The only elements we are able to charge as an agent are rent, holding deposit, variation to terms of agency, early termination fees within the fixed term or loss/replacement of keys.

Propertymark who promotes the highest standards in residential sales & lettings published an article on Landlords and buy to let 2 days ago which quoted

‘A survey of 5,000 landlords, by letting agent Benham and Reeves, assessed sentiment in the property sector amid tax and regulatory changes.

The majority (83 per cent)said they were unlikely to sell up this year, but just 28 per cent said they would consider investing in a property in the next 12 months. Half said they would consider expanding their portfolio within the next five years.

Two thirds of landlords said the proposed changes to Section 21 notices made them more cautious about investing in a further property, while opinion was divided over changes to mortgage interest relief and whether the sector still provided a good investment as a result, with 49 per cent believing it is and 51 per cent no longer sure.

Despite this uncertainty, 73 per cent considered property is still the best and least volatile long-term investment when compared to all other asset classes.

More than a third (37 per cent) felt very confident that they will see an adequate return on their portfolio over the next ten years, with a further six per cent stating they were extremely confident’

With the Summer holidays in full swing we have not seen the historic quiet down that we have over previous years. The diaries remain extremely busy and the phones likewise.

Our September auction is creating a buzz throughout the office as we hit a staggering 15 lots going under the hammer Tuesday 10^th September at Hogarths Stone Manor, 6pm sharp. There are a mixed bag of properties and development opportunities. Visit www.phippsandpritchard.co.uk to view the lots in depth.

Zoe Herbert DipREA FNAEA, Partner - (01562) 822244