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A Warm Welcome to 2016

Stumperlowe Hall

Fulwood, Sheffield

Blenheim Park Estates have experienced another busy year, as the property market remains buoyant, we have experienced healthy sales across our property portfolio and we continue to experience a steady growth of sales year on year. We are achieving healthy offers and regularly secure asking price offers.

We have also witnessed a large increase in clients looking to purchase land for self-build projects and we have had an unprecedented level of enquiries to our Blenheim Park Developments division.

Blenheim Park Estates forecast a similar story for 2016 and we are now poised to market an increase in one million plus properties, mainly due to the result of the general election quelling fears over a mansion tax from being introduced.

Sheffield’s house prices have registered a pick-up in growth since 2013 however average prices still remain below the level we experienced in 2007. With demand greater than supply we expect the house prices to continue to rise at around 3 to 4 per cent with some areas of Sheffield and Derbyshire achieving rises as high as 10 per cent, which falls inline with recent predictions for the average price increase expected across the majority of UK Cities.

The stamp Duty Reform introduced in April this year has seen both positive and negative effects to the industry. Properties with an asking price of around £500,000 have been boosted by the reform where as our stock from £2,000,000 upwards have experienced a reduction in viewers, but at the same time highlighted serious purchasers and once again we have experienced healthy offers and secured sales within this price range.

The changes in mortgage tax relief for buy to let mortgages have generated more stock at the lower end of our product portfolio as more vendors put their existing properties on the market rather than letting to tenants. In the short term we expect to experience a minimal impact, whereas once the changes are fully implemented we expect to see a rise in the length of property chains associated with sales with properties to sell.

An announcement of a proposed interest rate increase during 2015 prompted people to remortgage for long term fixed rates and mortgage lending has since increased at its fastest rate since the financial crash. With interest rates once again proposed to rise in early 2016, mortgage lending has continued to increase with first time buyers opting to purchase their first home with Vendors opting to remortgage during the on-going mortgage rate war, which has seen lenders battling for business and offering the lowest rates on record, according to the British Banker’s association (BBA).

This shows a common trend in mortgage and housing markets as remortgages were up by 38 per cent, net mortgage borrowing reached its highest monthly rise in five years and mortgage approvals were up by 23 per cent on the same time last year.

However as borrowers continue to take advantage of the record low interest rates that have been sat at 0.05 per cent since 2009, there are now signs that mortgage rates are beginning to creep up ahead of the Bank of England’s Bank Rate rise.

The UK and local housing market is in a healthy position and whilst demand outweighs supply we see the current trend to continue throughout 2016 and beyond…