Cheshire rental boom threatens return of gazumping
The wet weather experienced in the first month of 2011 has done little to dampen the enthusiasm of the borough’s estate agents.
Better than expected sales in 2010 and a surge of enquiries and new instructions in January is proving enough to encourage estate agents to predict an upturn in the market, despite reports of a national dip in house prices and a continued tightening on mortgage lending.
“The period between April and September 2010, saw us complete more transactions than we had done over the same period in the last five years, and around 100% more than in 2008,” says Edward Naden of Prestbury and Bollington based estate agents Holmes Naden.
“Some moves were through necessity but many were undertaken by individuals who no longer felt threatened by market horror stories. The number of enquiries handled in January suggests that this level of interest will be sustained,” he adds.
Despite house prices in Cheshire East demonstrating a higher than average annual increase of 7.6% and agents reporting healthy sales, it’s those operating in the rental market that are experiencing the biggest boom.
Rental incomes have been steadily increasing since Spring 2007 and demand for properties is at it’s highest since 2008*. Yet reports indicate that the volume of new rental accommodation coming onto the market has fallen successively over the last five months. With the difficulty obtaining mortgages tenants are staying longer which is slowing the number of properties coming to the market and limiting supply therefore leading to an increase in rental income.
Holmes Naden launched its rental business in Spring 2009 and relocated its Bollington business to larger premises to cope with demand. The firm has just enlarged its Prestbury branch to offer a more comprehensive rental service.
Says Edward: “When sales were at their peak and mortgages were easy to obtain renting was dismissed as dead money. Now, the tables have turned. Mortgages are difficult to obtain for both would-be homeowners and buy-to-let investors creating a surplus in demand for rentable homes and a shortage of supply.
“We receive hundreds of requests each week for properties in the Prestbury, Tytherington and Macclesfield area with rents exceeding many landlords expectations. Those that come on the market shift almost immediately. If demand continues to outstrip supply then we can expect rents to increase even further, and to see a return to sealed bids and even ‘gazumping’,” he adds.
For more information on the property rental and sales service offered by Holmes Naden Estate Agents, visit: holmesnaden.com
*source RICS Market Report November 2010
