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The cold weather might be setting in, and summer might seem like a distant memory, but the change in temperature in the property market can still be felt throughout Gravesend.
The summer temperatures soared and it was simply too hot to sleep at night, yet early indications were that the Gravesend property market appeared to be doing the reverse and was already starting to cool down.
19.15% less people moved home in the Gravesham area in the first part of 2018, when compared to the average number of people moving home (in the same time frame) between 2014 and 2017
The average number of households who sold and moved locally between 2014 and 2017 in the winter and spring months was 112 homes a month. Yet in the same time frame in 2018, an average of only 90 homes sold and moved.
So, what is the issue? Many have cited Brexit as the issue – but could it be deeper than that?
Brexit seems to be the “go to excuse” for everything at the moment. Those thinking of buying homes have been told now is not the time with Brexit looming, whilst those selling their homes are discouraged by the impending arrival of Brexit.
Both sides of the argument can’t be right! So, what exactly is happening?
Threats and opportunities of the current state of fluidity in the Gravesend property market, including the issue of OAPs staying in homes that are too big for them as their children have flown the nest, interest rates, inflation, lack of new homes being built and the long term attitude to homeownership have been identified. Yet a new trend in the last few months has emerged - the emergence of the ‘sell to renter’.
Sell to Renter?
There has been a subtle, yet noticeable number of Gravesend homeowners that have been selling their Gravesend homes, renting and wagering that, in the next few years, the Gravesend property market will tumble by more than what they spend on their short-term rental home, before they buy another Gravesend home in a couple of years i.e. a ‘sell to renter’. This type of ‘sell to renter’ is mostly predominant at the middle to upper end of the Gravesend property market – so will it catch on in the main ‘core’ market?
So, what does this all mean for Gravesend homeowners and Gravesend Buy To Let landlords?
Well, in the short term, demand for middle to upper market Gravesend rental properties could increase as these ‘sell to renters’ demand such properties. However, a note of caution must be made to Gravesend landlords buying in this sector of the Gravesend property market as yields in this sector can be quite low. However, for homeowners of middle to upper market Gravesend properties, you might have less people wanting to buy your type of property, as some buyers are turning to renting?
Remember, Gravesend properties are selling if they are realistically priced (realistic for the market – not a rose-tinted version where someone will pay 10% over the odds because everyone has access to the market stats with the likes of Rightmove and Zoopla!).
P.S Notice the spike in the graph, where the number of property sales jumped to 196 in the month of March 2016? That was all the Gravesend buy to let landlords snapping up buy to let properties before the stamp duty rules changed!