All is not so quiet on the property front

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Thursday, February 02, 2012
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Wells Journal

Quiet housing market – what quiet housing market? Glastonbury-based Tor Estates say enquiries and viewings have gone through the roof in January. Gavin Sweeney, one of the directors of the independent agency, takes a very positive view of the market and has plenty of evidence to justify his optimism. He said: "The historically quiet Christmas and new year period saw more enquiries than the previous two years, resulting in, on average, four sales agreed each week. And this is expected to continue."

Tor Estates was established in 2009, along with Tor Finance. Tor Lettings following in 2010, making a trio of companies under one roof. It was set up and is owned and run by Gavin and two other directors, Neil Kite and Mel Brown.

"We knew we could provide a better service based on the premise of treating people how we ourselves expected to be treated," said Gavin. "Our core principles are honesty, integrity and professionalism and we aim to provide a high level of customer service. Our team of seven has more than 50 years' combined experience in the local property market."

One of the most significant trends the Tor team saw in 2011 was the increase in investors, particularly cash investors who realised they could get a better return than in the bank.

Gavin said: "Investors are taking advantage of lower house prices, cheaper mortgages and higher rents. It's also a great time for first-time buyers as mortgage rates are extremely competitive which means that mortgages are generally cheaper than renting."

He believes this trend is not only going to continue but will develop over the next few years because of the unprecedentedly low interest rates.

"The Federal Reserve, the US equivalent of the Bank of England, has said that interest rates are unlikely to rise in the next three years," he said. "This doesn't mean Bank of England rates will follow the US lead but it is generally a good indicator."

As well as plenty of buying and selling activity for Tor Estates, Gavin says their lettings department has never been so busy.

"Demand far outstrips supply and new landlords are entering the market to capitalise on this. With house prices in the South West equivalent to 2006, some vendors are preferring to let their property instead of selling. As a mortgage consultant I have noticed a larger number of home owners seeking advice on let-to-buy and buy-to-let mortgages. Finally, for those who would like to get a foot on the property ladder but think it would be impossible, Gavin has encouraging words: "I have found that many people are pleasantly surprised to establish how much they can borrow on a mortgage and the process can be quick and painless."

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