Supply and demand has always played a significant role in the property market. What is flavour of the month today may not be next year and supply of certain types of property can change from over supply to under supply in no time at all. Generally speaking we have under supply of good quality homes in Norwich at most price points.
Right now in Norwich we have high demand for investment properties in locations close to the city centre with good letting potential priced up to £125,000. Investing in property is becoming a very common component of pension planning as investors seek to spread their assets as widely as possible. Three bedroom family houses in mature residential areas priced up to the £250,000 stamp duty threshold are also in short supply and we never seem to have enough detached four bedroom family houses in established residential areas around the £400,000 mark.
Building plots of any size and at almost any price are like hens teeth in Norwich. As one moves out of the city into the villages there seem to be more single plot opportunities but even these are scarce.
New build homes are still very popular with a particular type of buyer who wants an easy life and is not overly concerned about location. New build is easy because there’s not much to think about. You just move in and start living. However, ten year old houses are not in such demand because there is always an identical brand new house on another estate just down the road where the developer is offering free carpets, free legal fees and cash back when you move in.
Properties in remote areas are becoming harder and harder to sell due the cost of travelling to and from work, school and play. Properties with oil fired central heating are becoming harder to sell because of the insane cost of heating oil and remote properties outside of catchment for good schooling are becoming harder to sell as the postcode lottery of our education system becomes an increasing issue for parents of school age children.
There has been much hype in the media about a pick-up in the housing market and while it would appear that there is more buyer activity this year than last, the rules of supply and demand still apply.