Anthony Pepe’s Market Update – Spring brings forth increased enquiries and transactions

The challenges of the property market have been well documented with ongoing uncertainty over Brexit at the fore. However, there are plenty of signs of positivity that, perhaps, have been allowed to slip “under the radar” and which are, in recent weeks, turning into increased levels of enquiries and transactions being agreed.

The current number of people employed in the UK is at the highest levels ever and this makes for greater levels of income and for taxation to pay for our infrastructure and services and enable people to consider major financial choices such as moving home.Inflation remains at a low level and interest rates are also at close to historic lows.

The home selling and buying market has always “ebbed and flowed” with volumes and prices rising and falling in line with economic reality and public confidence. It has, however, always been a largely “safe haven” financially and, for most people who own their own property, an investment second and a home first.

People don’t move home every day and it is the medium to longer term view that needs to be taken and our prognosis is that, despite some increases in housebuilding, the long-term balance of supply and demand and therefore, value of, property is secure.

The lettings market is currently subject to an increasing amount of legislation and change, much of which, is seeking to provide tenants with a fairer and more affordable position. Unfortunately, many of the changes are likely to result in a reduced availability of stock and, with continuing increases in demand, will likely see rents rise, particularly if the balance of supply and demand shifts further.

The challenging market conditions are also taking their toll on those operating as estate agents or “execution only” service brokers – particularly the so-called “online agents.”

Cheap fees, paid for upfront (with no guarantee of success) may look attractive initially but ask those that had instructed Emoov, Tepilo, Hatched or House Network in recent weeks now that these businesses have all failed and closed and left sellers out of pocket as the fees they had paid have been spent and lost. Tepilo also picked up a £70,000 fine from HMRC for failures of regulatory compliance.

The old expression that there is “no such thing as a free lunch” is true and I am again reminded of the Red Adair quote that “If you think it’s expensive to use a professional, wait until you’ve used an amateur.”

And Benjamin Franklin famously said: “The bitterness of poor quality remains long after the sweetness of low price is forgotten.”

There is no pleasure in seeing others in our industry fail but there has to be a growing sense of realism about the true costs of providing a high quality, professional and compliant service that delivers the result the customer seeks.

For example, a recent report from Zoopla showed the five main concerns that landlords have:

• 56% said they were concerned about finding suitable tenants
• 55% said they were concerned about tenants looking after the property
• 47% said they were concerned about tenants paying on time
• 39% said they were concerned with keeping up with increased regulations
• 36% said they were concerned about future changes to legislation

All of these will be proactively handled and managed by a professional and experienced agent such as ourselves who will provide the “peace of mind” to a landlord that their property is being looked after and that their investment is being protected and maximised. For a tenant, they know that the property they are renting will be well maintained, safe and, should any issues arise, they will be dealt with quickly and effectively.

The delivery of quality performance and customer service has always been at the heart of everything we do at Anthony Pepe and this was recognised recently when we won six awards at the leading industry awards – the ESTAS. These awards are particularly important as they are based entirely on feedback from clients and customers.

Amongst our awards, we were selected as Best Estate Agency Group in London and won Silver for the Best Lettings Agent in the entire UK. A special mention also to Rena Georgiou, Property Manager based at Crouch End who won an individual People Award.

At Anthony Pepe, we continue to invest in our people and processes and work with some excellent partners to ensure that the sales and lettings “journey” is a positive one for our clients and customers. We enjoy an enviable track record but are constantly striving to improve and do even better for our clients and customers.

As always, the team and myself are here to help you with any questions and to assist with making your moving plans come true.

We look forward to being of service to you.

Yours,

Charlie Perdios
Managing Director.