Webbers has been one of Cornwall’s leading estate agents since 1924. In this blog Kevin Underwood, consultant at Webbers, gives us his view of the property market in the south west of the UK.
With the general election looming, it would be impossible not to factor in its effect on the housing market of the West Country.
The election is just too close to call and as in many other parts of the country, buyers and sellers seem to be watching this one, waiting for some indicator as to the post-election landscape and the opportunity it might represent.
Webbers is privileged (through strategic planning) that its branch network operates in Devon, Cornwall and Somerset.
Our overview, through our 15 varied branches in the region, has seen a patchy year to date with our average sale price of £232,000 slightly up, but only slightly, on previous years.
In 2015, we felt that the market would become more buoyant and when confidence returned, sales numbers increased and the market moved. Activity has certainly increased since Easter with the Exmoor, country and higher end market enjoying very good activity. But the slight hesitancy across the rest of the market remains in the most part because May 7 looms large on the collective consciousness of both homeowners and potential new investors.
Historically low interest rates and the need for a huge number of new homes to be built are strong foundations upon which to build and we remain optimistic that post-election, the market will be good for motivated sellers.
There is another pronounced factor which we believe will affect the market in the region: The unchartered territory of a potentially revolutionary new pension era.
In this brave new pensions world over-55s can use their pension pots (after tax) to invest in anything or indeed spend on anything. Yes, long-haul holidays and cars are included in some of our clients’ plans, although neither is really a conventional investment!
However, for the property world this presents a major opportunity. New buyers are now in the market, some starting out with or enhancing their buy-to-let investments. They are attracted by robust returns and potential capital growth but certainly many are saying that bricks and mortar is their haven.
And it is the coastal and waterside market which is currently the real winner, driven by demand and serious money from the south east. With the adage of “Location, Location, Location” in mind, the south west benefits from some of the most eye-catching locations in the UK.
Mr Cameron has a vision of a ‘Good Life’. Many commentators have likened this to Barbara & Tom in the Home Counties in the 1970s sitcom. And this is the reason why many top tier politicians are beating their path to the West Country, including Mr Cameron last week, partaking in a traditional cream tea in Barnstaple!
If you are looking for a slice of this `Good Life` the south west is the location and many are moving westward to enjoy. Money and high salaried jobs are not the motivation for buyers.
A quality way of life is the constant reason for buying, perhaps to raise a family, retirement or that second home.
We are millionaires when it comes to lifestyle with a choice of sandy surfers’ beaches interspersed between rugged cliffs, a choice of national parks and lovely towns with welcoming communities.
This is the real strength of our market and I have little doubt that it will continue to be a draw to buyers after the election.
Kevin Underwood is a consultant at Webbers.
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