Island Life Magazine Ltd December 2010/January 2011 | Page 30

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Island Life - December 2010

Country Property
WOODLAND - FARMLAND - EQUESTRIAN

WINTER BLUES OR
YULETIDE CHEER?
As early winter snow and mists
envelop us it is hard to see ahead.
In the property market troublesome
weather has come early this year and it
is difficult to predict a pattern for the
months ahead.
Last autumn the market was relatively
buoyant. Following the credit crunch
and after two or three particularly
trying years of falling prices and low
volume of sales, it had bounced back
strongly. Much of the activity was down
to buyers with no need for a mortgage.
They were able to cash in on pent-up
demand to sell. In London and the
Home Counties particularly, foreign
buyers were taking advantage of a
weak pound against other currencies.
Some London sellers have cashed in and
bought on the Island, providing pockets
of activity – particularly in the top-end
coastal market – where you would think
that the market had never dipped at all.
Now, perhaps, we enter a new phase.
The coalition government has unveiled
a radical set of measures to curb public
spending. Already the squeeze can be
felt and nowhere more so than in the
property market on the Isle of Wight
where so many people’s income is
directly or indirectly derived from the
public purse.
Discretionary property purchases
will take more of a back seat.
Death, divorce, job moves, births
and marriages will drive the market
through the winter months. Lenders are
still making it hard to borrow money
- despite their protestations to the

Sam Biles MRICS FAAV

contrary. Added to which some sellers,
encouraged by last year’s price surge,
have been reluctant to accept the new
reality. Now over-priced property is
lingering on the market – completely
ignored by serious buyers.
There are buyers out there and their
demand is not being satisfied. They
moan to the agents about the lack of
available property or the poor quality
of that which is available or the fact
that it is over-priced. Satisfying this
demand must be the objective of sellers
in this market - and their agents. As
the weather clears this could be a
fruitful time for those that take care to
understand the market.
To get results in the New Year there
is important work to be done for both
sellers and buyers.For sellers price is the
key. They should listen to experienced
estate agents and not make their home
the most expensive in their road, street
or village – it simply will not sell. They
should make it the most competitive
and offer the best value for money.
Buyers like value for money. Nor should
they be seduced by naive, incompetent
or untruthful agents who flatter to
deceive with inflated valuations. They
should listen to their heads not their
wallets.
For those already on the market who
have not sold, take stock over the
sherry and mince pies, confer with your
family and consider a fresh approach in
the New Year with an agent who does
not just tell you what you want to hear
but who understands the market and

will pro-actively find buyers for you. A
second opinion costs nothing.
Buyers should get their finances in
order; when the right properties appear
– as they surely will- it is the early bird
that catches the worm. Do not miss
out. For those with enough deposit
there are some good deals around –
but they should not have eyes bigger
than their pockets. We are, after all, in
a period of austerity. Prudence is good.
For those with cash or a mortgage this
should be an excellent time to buy.
Lastly, there is a person who often
will have as much, if not more,
influence on the eventual selling
price of a property than anyone – the
mortgage valuer. Right now they are in
the driving seat for those who need a
mortgage. Some sellers would be better
to be realistic about the price in the
beginning as these valuers certainly will
be realistic about the price in the end.
The economic news seems better of
late and fewer predicted job losses than
once were forecast, as the mortgage
market frees up and the deficit is
addressed there should be a light at
the end of the tunnel – can you see
it through the snow and mist? Have a
Happy Christmas and a Prosperous New
Year.
Sam Biles T: 527744 is Managing
Director of leading Country and Coastal
estate agents Creasey Biles and King

www.creasey-biles-king.co.uk
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