Richard Freshwater, Director, Cheffins says:
“The most recent Halifax house price index showed that UK house prices rose by 1 per cent in May, ensuring that the average house price has now hit a record of £289,099. In spite of this, the index also illustrated how this was the fourth month running where the annual pace has showed, which many have reported shows that the housing market is losing its momentum.
However, in Cambridge and the surrounding area, this doesn’t appear to be the case. We are still having record sales, with a huge imbalance between supply and demand ensuring prices are rising consistently. We have seen an increase in the number of properties going to competitive bids and exceeding guide prices, as buyers continue to head to the region. On average, properties see around forty requests for viewings, and at a guess, approximately 50 per cent of these will end up in a competitive bidding scenario. Whilst UK-wide house price growth sits at around one per cent, locally, I would put that figure at more around the five or six per cent, and even ten per cent for the right properties in the right locations.
Competition has been fierce for homes over the past 18 months, and what has really been the tipping point has been the new flexible working scenarios which many people now find themselves in. With the opportunity to only go to the office a couple of days a week, London commuters are now seeing Cambridge and the surrounding area as more of an option. And it still offers relatively good value for money in comparison to other areas of the London commuter belt, such as Oxfordshire, Berkshire or Surrey. With buyers seeking out a better quality of life, a larger property, more space and the ability to work from home, this has all created a perfect storm for properties in the area. These commuters have really driven the market lately and they are still competing with the local buyers, many of whom have been brought to the area to work on one of the many science parks in the Cambridge Cluster.
For sellers, now is a great time to capitalise on this trend. Demand from commuters has almost doubled in recent years, and many of these buyers are heading out to the Cambridge area with cash in the bank, ready to move.”
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