MARKET UPDATE
MORE BUYERS; MORE SOLD BOARDS; A HEALTHY AND POSITIVE ATTITUDE TO THE MARKET; LESS STOCK AVAILABLE... ALL OF WHICH SUMS 2017 UP IN A NUTSHELL!
As predicted at the beginning of 2017, stock Island wide has reduced considerably with in excess of 28% less property available to waiting buyers. For the first time in almost a decade buyers are struggling to find what they want and properties are selling soon after being marketed; it’s the change the Island has been waiting for and it’s a change that could rejuvenate the property market entirely.
It’s no secret that the UK’s property market has benefitted in recent years from capital growth whilst the Island has seen a decline in property prices, there are of course several factors that can affect the Island's market, the biggest of all being: Are we attracting enough new residents to the Island? And are they happy to lay down roots immediately? The answers are: NO & NO. The rental market has experienced a fantastic few years of growth on the Island rising beyond levels previously experienced and with property prices recently in decline it is providing new Landlords with healthy yields compared to many parts of the UK; however the tide is starting to turn slightly as we start to see tenants that have lived on the Island for 3-5 years deciding; it’s time to stay, it’s time to buy now because it’s never been cheaper to borrow and the Island hasn’t been as good a value for money for at least eight years.
There are less properties being built here too; it’s no coincidence that the second hand property market has seen a boost over the past eighteen months and that long awaiting Vendors are now experiencing viewing levels above expectations... There are plenty of signs that 2018 will be a positive year all round.
It was recently reported that the North West of England is predicted to outperform the rest of the UK with growth forecasts ranging from 16.5% to 18.1% over a five year period (courtesy of Savills and JLL property Consultants) compared to 14.2% nationwide. In the past five years property prices in the North West of England have risen by 20% yet on average they are only just above the levels experienced back in August 2007. You may ask; why are we interested in the North West of England’s property market; it’s simple, it’s because this is our target market for new residents, it always has been and geographically makes sense to always be that way.
With prices rising just across the Irish Sea the Isle of Man will be seen as better value for money - possibly leading to UK investors making the short hop from Manchester or Liverpool (for example). We should never lose sight of the fact we live in a very special part of the World, unrivalled in many ways and this is recognised by our neighbouring shores. With relaxation now being introduced to the work permit system the Isle of Man has an opportunity to increase its population with a demographic that could once again give our beautiful Island the lease of life it deserves and has relied on in decades gone by... Spread the word; Network where possible and let’s try to introduce new blood. It is the responsibility of all residents to make sure we do all we can to keep our Island moving!
Mark Canty
Director
