Desire to Buy still Strong
Despite ever increasing house prices, the desire to buy property in Cambridge and the surrounding area shows no signs of abating. Andrew Bush, a director of Bush Property Services, investigates why people are still so keen to invest in bricks and mortar.
House prices have risen over 21% in the last 12 months and yet, even though property in Cambridge costs above the national average, there still seems to be no letup in the numbers of buyers.
There are a number of reasons for this according to Andrew Bush, which have to do with both short and long-term factors.
"In the immediate future, some potential buyers are concerned by the effect that Home Information Packs could have on the market and are keen to complete the process before these come into effect in June.
"However, this only accounts for a small proportion of those pushing to buy.
"Longer-term, property is still seen as an extremely good investment. In recent years, houses have consistently outperformed the stock market as a way of making money and whilst that continues to be the case demand will only increase.
"Buy to let is still reasonably secure and many homeowners are buying second properties to rent out. As prices carry on rising, current and prospective landlords will reason that even if their property lies empty for a few months, they can make up the loss of rental earnings by the capital gain on the home.
"The centre of Cambridge, or at least the area within the inner ring road, is also benefiting from the increased traffic levels coming into town. Some buyers are reluctant to struggle in every morning amongst the thousands of cars and so want to buy closer to where they work.
"And Cambridge is enjoying an increase in desirability thanks to its proximity to London. Both in terms of an easy commute, and as a haven for city bonuses, it's seen as a highly attractive proposition. We have the double attraction here of being just 45 minutes from London, and yet offering a small but sophisticated city lifestyle with excellent access to the countryside.
"Cambridge's reputation also brings in buyers. Our world-class university, hospital, hi-tech and biotech industries are all playing their part in attracting not just high-quality well-paid employees, but also those who see Cambridge as a city with an historic past and a bright future.
"There is also a feeling that because of its diverse range of employers, Cambridge is somehow insulated against sudden downturns in the property market.
"More generally, the love affair that we British have with owning our own homes shouldn't be discounted. Unlike on the continent, where renting is much more the norm, having your own house is still seen as psychologically important and something to strive for here in the UK. A first home is almost a rite of passage for many people, particularly if they want to get married and start a family and as such they will stretch themselves to get on the first rung of the ladder.
"Looking at the above, a lot of things would have to go very badly wrong for Cambridge to lose its status as one of the most desirable places to buy, let or live. I think we're looking at high demand here for some time to come."
For more information call Sarah-Jane Jarrold at SJPR 07730 494 154
