Despite restricted mortgage lending and static property prices, 2011 is going to be a good year for Manchester’s landlords and homeowners. Four of Philip James’s experts take a look at the year ahead and explain why interest rates will stay at 0.5%
MANCHESTER CITY CENTRE LETTINGS
Rob Cuffe: “Rental prices to climb throughout 2011”
If the first four weeks of 2011 are anything to go by Manchester city centre is going to see a bumper year for lettings. Compared to the same period last year we have seen an unprecedented increase in enquiries and with no new residential developments planned in the near future we expect this pattern to continue throughout the year.
The most significant change in 2011 will be a marked increase in rents, fuelled by under-supply in the market – we’re expecting a marked increase by the end of the year, seeing the price of a typical 2-bed city centre apartment increase by about £50-per-month
There is also a change in the way our customers are viewing properties. A few years ago there was a leisurely pace; we’d take them to see a wide range of apartments and they’d go away and think for a while. In 2011 we see a different kind of tenant; they are more assertive, more decisive and ready to make their mind up straight away. They understand competition is fierce as much as we do.
This heady mix of under-supply and increasing demand has resulted in a record for Philip James – we’ve just reached our 18th month without a single property being un-let prior to the previous tenant moving out. In 2011 we expect more of the same.
Rob Cuffe, Philip James, 293 Deansgate, Manchester M3 4EW | 0161 828 8200 | CityCentre@philipjames.co.uk
SOUTH MANCHESTER LETTINGS
Neil Ryder “Shocking 6.6% price rise in the first four weeks of 2011”
The lettings market in South Manchester mirrors that of our city centre branch – 2011 continues last year’s severe shortage in stock and demand is on the increase. Mark Liebert our mortgage expert in our Didsbury branch explains below how the lending market is particularly tough this year – and this is seeing a real impact on our branch in Withington.
The biggest change is the rental prices of our managed properties – January 2011 has already seen a 6.6% price increase on the same period from last year and we expect this pattern to continue.
Philip James’s main goal for 2011 is to get more landlords on board so we can improve our supply and provide suitable properties for our increasing number of tenants and new enquiries.
Neil Ryder, Philip James, 412 Wilmslow Road, Withington M20 3BW | 0161 434 5007 | Lettings@philipjames.co.uk
SOUTH MANCHESTER SALES
Mike Wilson “House sale viewings are up 10% in January”
Just over a month ago in the deepest and coldest winter Britain had seen in 100 years, the team at Philip James Wilson’s Heaton Moor branch were having reservations about how the South Manchester property market would perform in 2011. But the snow has gone, the sun is out and the year is off to a good start.
Our first indicator of a positive 2011 has been the increase in viewings compared to November 2010 – they’ve jumped nearly 10% from 109 to 118. And compared to January 2010 the differences are even more extreme; twice as many customers have instructed us to sell their properties and we’ve sold one third more houses in the same period from last year.
But we’re not out of the woods yet – we still have issues with the mortgage market requiring customers to have heftier deposits and surveyors across south Manchester are continuing to be tough on valuations. Philip James’s Didsbury branch saw a significant number of properties come on to the market after the previous government’s abolishment of HIPs – but mixed with a lack of motivated buyers due to job uncertainty, 2011 will be a tough year in the sales market.
Mike Wilson, Philip James Wilson, 218 Heaton Moor Road, Heaton Moor SK4 4DU | 0161 431 5556 |email@example.com
Mark Liebert: “Don’t panic – interest rates won’t rise in 2011”
Despite widespread predictions of interest rate rises – for 2011 at least – we don’t see the MPC increasing rates. This may sound like a bold prediction, but Britain’s households are under enormous pressure right now and we don’t feel it’s the right climate for an imminent rise. With January’s VAT hike, increased fuel costs and the disappointing growth in the last quarter of 2010 the MPC aren’t likely to raise rates until the first quarter of 2012.
So if you’re a buy-to-let landlord it’s good news – 2011 should give you a year of breathing space.
If unforeseen circumstances arise and the MPC are forced to raise rates in 2011 it won’t be until the final quarter and only then by 0.25%. Even so, we don’t believe the MPC will look at another rise soon afterwards – they’ll want some serious data analysis of the 0.75% rate – they’ll want to see public reacion to the rise and to see what, if any, effect it has on inflation.
Mark Liebert, The O Rourke Partnership Ltd @ Philip James, 679 Wilmslow Road, Didsbury M20 6RA | 0161 448 1234 | firstname.lastname@example.org
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