Gareth Davies, Managing Director at Grosvenor
Against the backdrop of a widely-reported cost of living crisis, increasing interest rates and international unrest, it’s easy to see why people might have reservations about buying and selling property. However, Gareth Davies, Managing Director at Grosvenor, is urging homeowners and landlords in and around Cobham to remain positive. Here he outlines three reasons why residents should adopt a business-as-usual approach.
The last week and a half has been tumultuous to say the least. From not-so-mini budgets through to governmental U-turns, the news coverage over the past several days has delivered nail-biting drama at every step of the way.
Even as I write, it’s being reported how mortgage deals that were pulled by lenders following the Chancellor’s announcement are now making their way back to market. People are right to be concerned, though. We’ve had over a decade of relative stability – not to mention incredibly low interest rates – since the crash of 2008, so anything that rocks that sense of stability is likely to have an unsteadying effect.
However, just as the sun rises and sets, markets rise and fall – and the property market is no different. Sometimes we just have to ride out the troughs, even if they might feel a little uncomfortable, for it’s those that make us appreciate the peaks.
In the meantime, though, here are three reasons why the team at Grosvenor in Cobham remain positive despite the fallout from the Chancellor’s announcement.
1. Top dollar in Cobham
No, it’s not a reference to Cobham being an affluent area. Instead, it relates to the number of people from across Europe, the Middle East and the US who, following the pound’s slump, can now get a much bigger bang for their buck. Cobham has long been associated with an established American community, for example. ACS International School is a good example of this. So, if you’re a Cobham landlord with a property to let or homeowner with a property to sell, then you’re likely to be of interest to a US audience. Add to this the fact that the dollar can now buy much more in the UK and it means that your property could be of huge appeal. With a longstanding international contact book, Grosvenor could help you maximise your investment and bring a degree of certainty to what is an uncertain time.
2. Making the first move
One budgetary point that seems to have been universally welcomed is the change to Stamp Duty, which has seen the nil-rate tax threshold move from £125,000 to £250,000. However, it’s the government’s decision to increase the nil-rate threshold for first-time buyers from £300,000 to £425,000 that’s likely to pique the interest of those interested in getting their foot on the ladder for the first time. This means that first time buyers will pay zero stamp duty on a property valued at £425,000 and under. The move, which has essentially removed barriers to homeownership at the lower end of the market, is likely to promote movement throughout the entire chain and ultimately loosen pressure on the chain towards the higher end of the market, too.
3. Supply and demand
Regardless of what’s happening economically and politically, demand for properties in Cobham, Claygate and Hinchley Wood remains exceptionally high. We’ve recently sold properties within only days of listing them. In fact, the only barrier to more sales right now is availability. If you’ve decided to sell your property then don’t be swayed too much by the news agenda. If it’s only taken a few days for lenders to reinstate mortgage products after quickly withdrawing them, then it’s likely to look very different only weeks – if not days – from now. Traditionally, the rental market represented a more accessible route to housing when interest rates rose. These days, however, the cost of renting is not dissimilar to the cost mortgages with high interest rates built in. Everyone needs a home, so whether you’re looking to sell or let your property, there will always be demand.
Looking to sell your home? For impartial and honest property advice, contact Grosvenor team of Surrey estate agents to arrange a valuation of your property on any of the numbers below.