20 FOR 2020
This will be a year of certainty in the property market
There was one moment towards the end of 2019 that – at a stroke – changed the outlook of the property industry. Confidence and certainty returned to the sales and letting market at the very moment the exit poll predicted an emphatic general election result. The next morning the phones were red hot at the Gloucestershire-wide branch offices of estate agents Naylor Powell, as confidence in the future of the housing market returned. James Birt, managing director of Naylor Powell, believes that moment changed the outlook for 2020 for the industry. “The political storm over the last few years has been challenging,” Mr Birt said. “However, as a business we have thankfully weathered this better than others. “There have been pockets that have been affected more than others. In Cheltenham, there was more hesitancy than Gloucester and Newent for example. “Since the election result in December, there has been a significant upturn in the sales and lettings departments. “Almost the day after, we noticed the difference. “Enquiries from both prospective purchasers and vendors shot up. From a business point of view, we were able to plan ahead with greater confidence and certainty.” An election in December was also a real bonus for the property business, which usually sees its summer highs affected by polling days and the uncertainty that it can bring. But with a clear year – even a clear five years until the next election – Mr Birt is expecting prospective owners, sellers, landlords and tenants to make the most of it. “Elections usually take place in the summer, slap bang in the middle of our peak time and the past five years have seen three elections and a referendum,” Mr Birt added. “Our summers have been distracted by those,
because at our busiest time of year, people have been saying ‘we’ll wait and see.’ “Early indications for 2020 are that there is confidence in the market. “Locally, the Gloucestershire market has always been strong, price wise, but we are already seeing increases that we didn’t necessarily think we would see. “National industry experts anticipate at least a two per cent rise across the country, but there will be pockets that do better. “Gloucester is probably going to be one of those. Partly due to the lower average property values, but certainly because of all the great work that is going in to regenerating the city. “The general tone is that we should see a 10 per cent increase over the next five years. “And it’s not just people already on the property market, we have seen more first-time buyers in the last six months than we have in the year or two before. “There has been a lot of fence sitting, but this new political certainty has given these buyers greater confidence.” The increase in business has also led to Naylor Powell needing to expand its ever-growing team that work from their Gloucester, Stonehouse, Newent and Cheltenham offices. The firm prides itself on offering a bespoke and
38 | February 2020 | www. punchline-gloucester .com
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