KEEP CALM AND CARRY ON!

Article written by Paul Adams (Adams & Jones Estate Agents)

What is going on?  This week Zoopla have announced an annual fall in property transactions across the UK of over 20% and mortgage lending down by over 30% compared to last year! Yet, so far, there is no sign, around here anyway, of estate agents throwing themselves like lemmings off the edge of Beachy Head!  In the main there seems to be a calm acceptance of the situation and a general feeling that this is a temporary blip.

So why?  There is no doubt about it that fourteen interest rate rises in a row is starting to take effect.  Properties are generally taking longer to sell, proceedable buyers are negotiating harder and sellers are having to be much more open minded to offers. 

However, in the Market Harborough area we are, definitely, luckier than most surrounding areas.  People from out of the area are starting to realise what we have known for years, Market Harborough is a particularly nice place to live.  Ever since those dark days of the pandemic, when people working in London started working from home, we have seen an exodus of commuters heading here to take advantage of a much more comfortable lifestyle whilst still being on a good rail link to the city. 

Being of the age where they shall soon be putting me out to pasture, I’ve had the dubious advantage of having experienced two previous property recessions whilst working in Market Harborough, 1989 when mortgage interest rates rose to 16% or more! and the global banking crisis in 2008. The biggest cause of the boom/crash market of the Thatcherite era in the late 80’s was the easy availability of finance, with little regulation, and the common concept that property was a short term investment – Buy a house, quick lick of paint, and make a killing in 6 month’s time!  Property has always been a medium to long term investment, with prices and sales volumes fluctuating, approximately every seven years.

During both of these times, we saw property prices fall and volumes of transactions reduce dramatically.  But even as far back as 34 years ago, our town was considered one of the nicest places to live in South Leicestershire.  At the worst point we saw property price falls in the region of 27% whereas some of our neighbouring towns suffered a drop closer to 50%! 

The other dramatic change we’ve seen over recent years has been the significant increase, due to more transient lifestyles, of the private landlord.  Many more people are now turning to renting their properties out if they can’t, or don’t want to, sell at the advised market value.  And the good news is that the average rental property is renting out within two weeks here, often with multiple applicants!

In essence, what I’m saying is, let’s count our blessings to be living in this beautiful area and, even in the worst circumstances, there will be options available to be able to move on.

Oh, and by the way, before my competitors start counting the days, I think I’ll stick around for a little longer!

Paul Adams

Adams & Jones Estate Agents
9 St Mary's Road
Market Harborough
LE16 9DS

01858 461888
www.adams-jones.co.uk