We are seven months in to 2018 and we’ve taken the opportunity to give our views on the Cornish Property Market to date. We also look at what may lie ahead!
The New Year heralded the start of many challenges as we all anticipated the impacts of the first rise in the base interest rate for ten years. There continued to be diverse regional variations in market activity, with Land Registry data showing that Cornwall experienced a general three per cent price increase from last year whilst many other regions saw slight declines in asking price.
With the changes to Stamp Duty coming into force for First Time Buyers, we saw this as a good boost for those spending up to £300,000 with no stamp duty payable whatsoever. Cornwall has become a tough market for FTB’s due to the high average value of homes coupled with the lack of supply for new homes. We’ve seen a good response to the Stamp Duty changes with FTB’s gaining confidence in purchasing their first homes. Raising the initial deposit remains the biggest hurdle.
Easter saw the annual boost in property listings after a winter that seemed never ending. Cold weather and heavy snowfall saw a very slow market which has somewhat recovered to “normal” volumes up to the mid way point of 2018.
As 2019 rapidly approaches, we’ve considered our thoughts for the rest of the year and we think that Brexit will play a large part in the decision making for many buyers and sellers. A good deal, as we leave Europe, may see renewed confidence for Property Investors whereas a bad deal will possibly see those with second homes or buy to let’s look to cash in while the price is right.
In Cornwall, we can expect to see a net 2% rise in property prices across the region by the end of 2018. Growth will slow next year to around 1% as the fallout of Brexit hits dents confidence in property, before prices recover to a 2-3% growth in 2020 amidst renewed optimism for the UK.
A key driver in the property market remains the demand for holiday rentals, fuelled by overseas visitors and demand from “staycationers”. The dry, warm and sunny summer of 2018 will help to reaffirm Cornwall as a great place to holiday. The dip in value of pound sterling seems slow to recover and is unlikely to gain momentum until we’ve left the EU. When the pound is low against the dollar and euro, it costs more for us to holiday abroad with the reverse effect for those coming to the UK.
The above is based on our own research and predictions. You should always seek independent financial advice and do your own research when considering buying or selling property!