News

Update January 2016

By Nick Gale -

2016 has got off to fantastic start with strong demand . The Stamp duty changes that come in on April 5th are having an effect and buying activity has certainly increased in order to miss the 3% increase on second homes.

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Investor Update - November 2015

By Nick Gale -

With the recession fading into the past and, after several years of healthy growth in property investment and near boom conditions in the Bath area, maybe it's time to re-assess potential for returns over the mid-to-long term.

Bath has delivered healthy returns over the last few years helped by a burgeoning private Lettings market to wealthy (mainly overseas) students and also the arrival of several new developments in Bath which have most fortuitously, these modern tenants with just the accommodation that they require. By far and away the largest development is by Crest Nicholson Regeneration at Bath Riverside. Just a few minutes walk from Bath city centre and the main Sainsburys supermarket, it is also seconds from the main bus routes to both Bath Universities whilst enjoying a fairly tranquil riverside position as its name suggests. Bath Riverside has consistently provided not only gross yields of over 5% (historically, quite high for Bath) but also much more surprisingly for those who wanted to sell, price increases of 12-14% in the last 3 years, quite a bonus!

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Bath Property Market Update March 2015

By Nick Gale -

Are we all really gripped by Election fever?

We don’t really consider that we are – it would seem many of us are reasonably apathetic as to the result with many feeling that a coalition is likely. Looking at more basic fundamentals, many of us will be paying less Stamp Duty to buy a house and interest rates are going to continue to stay low and the “imminent” possibility of rate rises has not materialised. The general feeling about the economy seems to be that we have turned a corner and that putting the country’s finances into order is still a priority if we are going continue to attract foreign investment and business to London. We are aware that the London market has softened after a period of sustained price growth and that the market over £2,000,000 is feeling the effect of Stamp Duty rises and the possibility of a mansion tax. We have a slight reverse theory on this; whilst London was accelerating over the last two years, potential West Country movers have perhaps held on to ride out the price inflation in London. If the London market slows down, our opinion is that larger volumes of people will leave the City in the next 12 months. That said, when you look at London house price growth over a 20 year period it is very rarely static and therefore this window might be short lived. The electrification of the railway line is certainly an excellent piece of news which will also contribute to Bath’s consistent attractiveness.

We feel the near term future in Bath property is that prices in 2015 and 2016 are going to rise by approximately 8-10% depending on location.  Demand still outstrips supply in Bath.  This is being fuelled by a number of factors:  the increasing number of people wishing to purchase buy to lets; not enough properties coming onto the market – we are living longer and staying in our houses longer; and the government’s target for new homes is not being met.

It is really hard to say whether there has been much impact with regard to the oncoming Election in terms of buying activity. Certainly we have seen a slight decrease in the number of properties coming onto the market, however we have achieved 13% more sales this year* than we did during the same period last year*. It is likely that there will be slightly more property coming to the market after the Election and vendors coming to the market prior to May are likely to be greeted by some fairly keen purchasers who have seen fewer properties.

*1st January 2014 – 9 March 2014 compared with the same period in 2015.

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