Local property market figures contest national reports of property "boom"

With growing reports in the national media about escalating property prices and another property ‘boom’, local estate agents, Maitlands Sales and Lettings, have reported a more realistic picture here in the Plymouth area based on activity over the first half of 2014.

Andrew Blacklock, Managing Director of Maitlands Sales and Lettings, looks to share some facts on the true picture for the local area: “For a number of months now there have been countless reports of another boom in the property market and that house prices are out of control and need curbing. However, these reports are based on activity in some desirable areas in London and the South East, rather than here in the Plymouth area.

“As we come to the end of the first half of the year, at Maitlands we have looked back using our extensive data to give a true reflection of what is actually happening where we live, rather than several hundred miles away.

“Comparing activity in the marketplace from January until June this year, with the same period in 2013, we have found that the picture here in Plymouth and the surrounding areas is quite different to the national reports of prices rising some 10% or more. In fact, we have actually seen the average price of properties sale agreed in this period fall slightly.

“In the first half of 2013, the average sale agreed price was £185,640, compared with £181,910 this year – a fall of almost £4,000. This reduction in price could be attributed to the increasing number of first-time buyers that we have witnessed coming to the market. With many of these looking at properties sub £150,000, in turn this may have had a knock-on effect on the average house price, however it’s certainly not the 20% increase that national media have recently been reporting.

“Nationally, rising property prices are being attributed to a shortage in supply of homes coming onto the market. Whilst we are not seeing the massive shortages that are being reported nationally, locally, we have brought to the market virtually the same amount of property this year as we did in the same period last year, however there is still a strong demand for quality properties marketed at the right price.

“Over the first half of this year, we have agreed sales on 95% of the properties that were new to the market with us, an increase of 3% on the same period in 2013. So yes, whilst this is an increase, it is not to the extent we are being led to believe is happening across the country.

“Year-on-year we have experienced an increase of some 15% in the number of prospective buyers who are registered with our four branches. This increase is again linked to the growing number of first-time buyers who are looking to enter the market, with a 16% increase in buyers registered and a 20% increase in buy-to-let investors compared to the same period last year.

“So whilst there are some really positive signs locally, it is not to the extent that is often reported. The worrying concern is that the Bank of England and the government are looking at a national picture and setting policy based on a small area of London and the South East.

“From a homeowner perspective, whilst it is interesting to see what is happening nationally, it is important to know the real facts where we live, rather than rely on national media or government opinions. As these figures show, we are clearly not in ‘boom’ territory. In fact, with the new mortgage regulations now coming into force, things are already getting harder for buyers, which is likely to have a knock-on effect for future demand.

“Our advice for the remainder of the year is to remain sensible and not let national headlines cloud your expectations. As our figures show, there is clearly still a strong demand for properties which are marketed at the right price. Those looking to sell need to ensure that they choose an agent that gives an honest, achievable valuation, based on accurate information on what is actually going on in the local market place ,rather than pricing above market demand to win your business.”

Established in 1994, Maitlands Sales and Lettings have branches in Ivybridge, Plympton, Plymouth and Saltash. For further information or to arrange for a valuation, visit www.maitlands.biz