Outlook for 2015
2014 began strongly and proved to be a good year for our clients, with two sales exceeding £100m for the first time since 2007 and total sales in excess of 0.5bn, reflecting an overall success rate of 86%. A General Election due in May, talk of significant Government spending cuts thereafter and potentially the first change in the UK base rate since March 2009, will add to the challenges facing the market in 2015.
We can see good demand in the market, particularly for those properties which are well-let or have potential to add value. This continues to grow, with on average, a fifth of all sales to first time buyers. In addition over a third of all buyers now have access to finance and 78% have said they intend to buy again in the next
With regard to supply, we would expect property company vendors to continue to dominate and the number of private investor sales to continue to grow. A proportion of these sales will most likely be consensual (i.e. at the request of the lender) and as a result we would not expect to see major changes in the number of receivership sales.
Whatever changes we may see politically in the continuing era of low interest rates, it is likely that demand from investors for property will continue, given the limited returns and volatility in other investment markets.
The key to a successful sale is getting the price and marketing strategy right. In theory ‘pricing’ should become easier as transactional volumes increase, but each property is unique and anticipating how the market will react when faced with a particular asset is vital.
By virtue of the huge volume of properties we sell and value, Allsop are uniquely placed to advise clients on pricing and the most appropriate marketing strategy for both individual properties and portfolios. This knowledge combined with the proactive, targeted and intelligent marketing we undertake, ensures our clients’ objectives and aspirations are consistently met.
2015 will undoubtedly bring new challenges, and we look forward to facing and overcoming them with our clients.