Is this mini-boom sustainable and who is benefitting?

I have doing a lot of reading and reflecting recently on what is really driving this mini housing boom and asking myself the question; is it sustainable?

A recent article in the Financial Times exploring the divided housing market suggests that the relatively wealthy are active and the demand for £1m plus homes has risen considerably. However, the less well-off are in many cases being priced out.

Another striking point in the article is that changes to stamp duty are of little additional value to first time buyers given that those paying £500,000 or less already received relief, and the most likely outcome is negative; increased competition for the home they need to buy.

The headline figure of 12% higher prices than this time last year sounds promising on the surface, but as always it does not mean every home is worth that much more. In fact the figure is being inflated by a larger than normal proportion of high value homes coming up for sale, as the already wealthy look to capitalise on the #stampdutyholiday and before the possible overhaul of the capital gains tax laws is implemented. If we look at our specific area - the North West of England, we are seeing that, like the country as a whole the market is experiencing a relative boom. A lot of overpriced stock is being brought to market and it is selling and selling quickly. This inevitably makes it more challenging for property investors to find deals for their investors.

This is where knowing your market and having a clear strategy separates serious investors from those just dipping their toe in the choppy property investment waters.

That’s because there are deals to be had for those that have the desire to look beyond the traditional buying methods and those with patience and work ethic to follow up on offers. It is absolutely essential to source properties 'off market' in order to find deals that stack up and to be able to maximise returns for investors.

A recent project we completed in Blackpool was on the market just 5 days before selling at very close to the asking price. Great news for us and great for our investor who walked away with a handsome profit. Now they want to reinvest, we have to keep our pipeline full and we are work extra hard to do so.

How is the property market in your area, is it similar to the North West or completely different?

Please can I ask you to share this in article in your networks and to leave me a comment below, whether you agree or not.

To read the full Financial Times article, click this link:

https://www.ft.com/content/88d1274f-e414-4444-9bc7-d7c97c5cfb26