Carlisle Property Market update

CARLISLE PROPERTY BLOG 28/09/20

House prices continue to increase as demand runs ahead of supply across the UK housing market.

The annual UK growth rate is +2.6%, up from +1% a year ago. ZOOPLA 28/09/20

The Carlisle market mirrors the national trend and in my mind is as strong as it has been in over 14 years.

37% rise in demand, year on year

Further COVID restrictions to support demand in near term. We have previously highlighted how the strength of the housing market is being driven by a once in a lifetime re-evaluation of housing in response to COVID and the lockdown. Households are prioritising space and location as well as factoring in a shift in working patterns. Less time spent meeting friends and family in public locations will re-enforce the importance of the home. We believe that a second spike in new cases and a tightening of restrictions announced by the Government will only serve to support this trend, primarily for those households in more secure financial positions. However, the housing market is not immune to any prolonged weakening in the economy and the impact of less Government support. ZOOPLA 28/09/20.

In Carlisle, 3 and 4 bedroom properties are in high demand. Prospective purchasers have internal space and good gardens high on their agenda. Fast broadband is very important to them also.

Demand from first time buyers weakens but existing home owner demand remains strong.

Reduced availability of mortgages at or over 90% LTV – as lenders meet increased demand at mid to lower LTVs – is a primary factor behind weakening demand.

Those home owners with strong equity is the strongest market.

Renters Reform Bill pushed into the long grass

It appears that the Renters Reform Bill – a key measure in the 2019 Conservative General Election manifesto – has been pushed into the long grass.

The pledge was for this Bill to include the scrapping of Section 21 eviction powers and the start of the concept of lifetime deposits transferable from one property to another when a tenant moves.

No date has been made available in Parliamentary business for the Bill to be introduced, although it was announced in the Queen’s Speech last December as being a measure that would be initiated in 2020. Letting Agent Today 25/09/20

Did the chancellor ignore the private rental sector?

There was no comfort for landlords in the chancellor’s support measures. Landlords own one or two properties and rental is often their sole source of income, make up the majority of landlords in the UK and many are facing hardship. Lack of support may mean many will exit the private rented sector which will cause enormous problems for tenants in the coming year.

If you are thinking of selling or investing in property, please feel free to get in touch for a free valuation or no obligation chat.

Best regards

Gordon

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