Customer Update

In our newsletter in April, I predicted that there would likely be an increase in two things as a result of lockdown, a baby boom as people became bored of Netflix and sadly an increase in separations. Both of these predictions are starting to come true, and both are historically motivators for people to move home.

I also predicted there would be a change in the requirements of what buyers were looking for in properties, and this is starting to be noticeable too. Properties with outdoor space are very much in demand, and high on the wishlist are additional rooms which can be used as a home office space.

The net result of the above behaviours is an increase in demand for properties. I say this every month, but I am incredibly proud of the results that the team is achieving. In July we saw an increase in sales of nearly 80% compared with July 2019; however the increase in new properties on the market was less than 10%, so we urgently need more properties. 

In figures released last week, the North East had the lowest property prices in the country which enables nearly all buyers with a modest deposit to buy a family home. The average property price in the North East was £157,000, the national average was £320,000, and the average in London was £641,000! It is a very stark fact that you can buy four properties in the North East for the cost of one in London. An interesting trend which is starting to develop is an increase in enquiries for properties in the region from buyers who are living outside the area. In some cases these are people who are looking to return to the region to be closer to friends and family, others are buyers looking to relocate to the area to buy a larger property for a more reasonable price. With the increase in remote working being 'close to the office' is no longer essential for many workers.  

We keep a close eye on what is happening with regards to infection levels, etc., and we remain committed to keeping our clients and our staff safe. We ask that no one attends an appointment if they have symptoms/have been in close contact with confirmed cases/have visited countries which require quarantine etc. We are also asking that everyone wear face coverings when attending properties and in offices. We were able to work remotely during the lockdown period, and our team remain ready and able to work from home should localised lockdowns occur. However, we sincerely hope we don't have to put this plan into action.

People ask me regularly 'is now the right time to buy?' I may have been correct about the baby boom etc., but unfortunately, I can't predict what is going to happen to the market. I would say with interest rates low and no stamp duty to pay up to £500,000 (for those buying a property as their primary residence) the cost of moving is currently lower, which would encourage those who want or need to move, to do so.

Best wishes, keep positive and stay safe!

Caroline Pattinson

Managing Director