Clocks go forward and the residential property market goes…backwards!

Posted on 20th March 2017 by Adam Mackrell

As the clocks go forward giving us lighter evenings, we look towards what is traditionally a busy season in the world of residential property buying and selling here in the UK. However there is no doubt that this year the market will be subdued this spring and summer and we believe it will stand still in many postcode districts and will begin to retreat in some others over the course of the year.

Meaning OSG leverage increases √ Ear to the ground research value gains √

Letting agents – still feeling very hard done by after being told they can no longer rip off tenants with silly fees (like £200 to change a name on a contract?) are spared the rules on the Fourth money directive and customer due diligence (CDD) that the authorities are bringing in this year for estate agents (no more laundering of dirty money in – mainly London then). So to sum up buyers checked and landlords and agents not so!

Meaning OSG Policies in line with what is expected √

Many letting agents are raising fees this year for landlords to make up the shortfall of the easy money they have gotten all too used to and according to Home let 30% of all landlords will be raising prices this year due to an increased percentage grab of income from the letting agents… Well done Letting agents and landlords let’s pass on the cost – ultimately to the tenants again to prove what a great, sustainable business model you have?

Meaning OSG using in house agent, not charging tenants any fees what so ever and still being on average 40% less than high street letting agents with the same protections in place – a good wise move for our investors √

You’re not so humble OSG… I hear some say. Well yes, the line between humility and pompousness can easily be blurred sometimes but the line of honesty and openness trumps it all and to quote the great actor Samuel L Jackson in a great movie  “that’s the triple truth Ruth”!

Adam Mackrell
Director
Oxford Spires Group