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The local picture

12th December 2008 | back to article listings BACK    print this article PRINT

When it comes to the property market, the question of location has been repeatedly cited as being a crucial one in deciding on investments. However good a deal may appear and however cheap a bargain, the importance of being in the right place has been emphasised by experts time and again.

This may apply to many issues. For instance, when it comes to renting to professionals who may commute into city centres, proximity to transport links may be very important. Today saw the results of a referendum on a congestion charge to fund a major expansion of Manchester's network of trains, buses and trams. Had this been passed, prices may have risen in areas that gained new links. As it happened, the result today showed an emphatic no vote, meaning investors may look away from areas that will not now gain new facilities. Instead they could either look to places that are well served by public transport, or districts that will benefit from new plans already in the pipeline, such as Metrolink Tram system extensions into east Manchester and northwards towards Rochdale.

But transport is just one of many issues. Another may be the question of local market supply. Commenting on this, a spokesman from the Association of Residential Lettings Agents (Arla) has stated that in the near future the local picture will be far more relevant than any national one.

He stated: "The days of sweeping national averages have gone; different areas will have different situations. It is much more patchy than it ever has [been]."

The spokesman added: "It's going to vary tremendously. In some areas there is going to be more demand than supply and then in some areas there is going to be over supply. The only thing you can do is watch your local market, which has always been the case for the rental market. Partly because it is much faster moving than the sales market and it is a much more fluid market."

So for investors looking to expand their portfolios, this may bring a new consideration. The response will need to be the conducting of more research and monitoring than ever, as trends shift and one area differs from its neighbour.

Those who do look at the national picture may note statistics such as the Royal Institution of Chartered Surveyors Residential Lettings Survey for the third quarter of this year, which found that in November 56 per cent more surveyors recorded a rise in new landlord instructions than a fall. In July the figure was only 45 per cent.

What that suggests is that buy-to-let is still on the rise overall. But the Arla warning is clear: While these figures may show that the opportunities are out there, it will be those who find out the local picture and respond accordingly who will prosper, not those who merely rely on such "sweeping national averages".

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4534.html. Alternatively, please see our full press release archive.

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