What is happening in the housing market?
The unique property market of the last two years and sustained high prices has finally settled into a steadier market and one that we were familiar with pre-pandemic. The frenetic bidding wars have slowed and the property market in general is seeing more realistic and on point pricing of properties.
The average price of property coming to the market has dropped by 1.1% this month, bearing in mind the financial uncertainty that has evolved over the past few months, this fall aligns with the average 1.1% drop recorded in November during the pre-pandemic years of 2015-2019.
In an increasingly price sensitive market it is pertinent for vendors to listen to their agent’s recommendation on pricing. Pricing right first time is imperative to allowing the entire process to go as smoothly as possible.
At CH we are still attracting a number of investors and purchasers seeking a home due to a change of circumstances or a second home bolthole retreat. There will always be people who need to move.
Autumn Statement
Stamp duty holiday ends 2025
The Chancellor confirmed that the stamp duty cuts announced in September will remain in place to support the housing market over the next two years. But he announced that the savings will come to an end on 31 March 2025
Interest rates average 5.6%
Mortgage experts felt that rates were on their way down but were cautious on just how far they would drop. However, a couple mentioned a lender ‘price war’ in 2023, which is either wishful thinking or could either move the market in the right direction.
CGI Allowance decreased
The Government’s proposal is to reduce the annual tax-free exemption over the next two years. In April 2023, the exempt amount will be reduced by more than half to £6,000 per annum. From April 2024, this amount will be halved again to £3,000 per annum. There is currently no proposed change to the tax rates.
Council Tax increased by 5%
The government revealed it will allow local authorities in England to raise council tax by 5% without the need for a referendum. Previously, councils had to put planned increases of more than 2% up to a public vote.
It is reassuring to note that buyer demand is still up by 4% on the more normal market of 2019, but down by 20% on October last year. Bearing in mind the exceptional and unique market activity last year the gap is not an accurate reflection of the market in general. It is evident there are people who are ready and able to move but are waiting on the side-lines for reassurances and financial clarity in a time of global uncertainty. Interestingly, and reassuringly, there is not an excess of unsold properties. There are a lower number of properties available but enquiries are still over a third higher than in Autumn 2019, a condition of the market that is preventing any price falls by more than is usual at this time of year.
Following 3 years of growth the adjustments to pricing have been inevitable. The property of the beautiful South Hams continues to attract substantial interest from buyers downsizing, upsizing, and those relocating having experienced the vibrant lifestyle.
At CH we are still attracting a number of investors and purchasers seeking a home due to a change of circumstances or a second home bolthole retreat. There will always be people who need to move.
The Lanterns - Hope Cove
ONLY 3 REMAINING!
The Lantern Lodge Hotel, built in the early 20th century, offered visitors the spectacular sea views and wonderful surroundings for holidays. The redevelopment of this hotel site into 15 modern apartments, aptly called ‘The Lanterns’ in reference to its history, is part of a £3.3 million project by Trinity Square Developments. The state-of-the-art apartments were constructed using as much local labour as possible.
The high quality construction by local firm Lilburn Elliot Construction means this is a highly energy efficient development with a low carbon footprint which exceeds current building regulations. The planning process and construction of this high end frontline development has been lengthy but the stunning results and quality of build are evident offering an excellent build finish.
The unique development offering the only current new build frontline development on the Devon and Cornish coastline, presenting a one off opportunity to live the Devon dream. The properties are now complete and attracting a great deal of interest from purchasers countrywide.