Sold STC £595,000
Looking forward in uncertain times
Published January 7th, 2020
At the start of a new year it’s time to reflect on the past 12 months and look forward to what lies ahead, writes Charlotte Rogerson, chartered surveyor at the Shrewsbury office of Berrys.
Political and economic factors continue to impact each property market whether that be residential, rural or development land.
Although the Royal Institution of Chartered Surveyors (RICS) reports that nationally there has been a slowdown in new buying enquiries, agreed sales and new instructions, the housing growth indices in the West Midlands region suggest a 2.79 per cent growth in the value of residential property since the beginning of 2019.
Brexit uncertainty continues to be held as a significant factor affecting consumer confidence with buyers and sellers putting thoughts of moving home in 2019 on hold until the outlook is clearer.
The demand for rural land in Shropshire continues to be the driving factor for its value. Nationally, the market suggests a slowdown in growth for agricultural land value, with some areas of the country reporting a decrease in value. Shropshire, however, remains polarised with some land achieving above expectations, whilst other parcels in more marginal areas taking longer to sell.
Demand for development land with residential planning potential is unprecedented due, in the main, to the constant drive for more housing to fulfil the alleged housing crisis. Shropshire Council is still consulting on its local plan which will allocate further land for housing. Until this plan has been finalised the supply of much needed development land in the county will remain restricted.
Money continues to be cheap to borrow and with a new government in place we hope the political uncertainty of 2019 is behind us so we can look forward to a more normal market.
Historically, property prices tend to show modest growth after an election and with Conservatives returning to power we expect the pent up demand from the 2019 cautious market place to be released to invigorate the market. Whether this can be sustained will depend on the speed Brexit can be delivered.
Buyers and sellers should do their due diligence before setting their heart on a property in this challenging marketplace.
Robbie Jackson, senior building surveyor at our Shrewsbury office, says purchasers should consider whether they need to have a building survey report on a property as the mortgage valuation alone may not fully identify any significant defects or legal issues with the property or highlight any costly repair works that might be needed.