- Thornley Groves’ sales growth suggests ‘business as usual’
- Warns of ‘self-fulfilling’ prophecy if sellers lose confidence
A rise in transactions for leading Manchester City estate agent, Thornley Groves, in the two weeks post-Brexit suggests the local property market is back to business as usual.
The 50% rise in sales is a return to average pre-referendum figures and coupled with a 25% rise in registered buyers shows there are no signs of the market slowing down.
While appetite to buy continues to grow, the local market has seen a 35% drop in homes for sale (similar to national average) due to current political and uneconomic uncertainty.
Michael Groves, Regional CEO for Thornley Groves’ parent company, Lomond Capital, believes that now is the time to sell and warns that if sellers decide not to list their property, there is a risk of a ‘self-fulfilling prophecy’ and the local market stagnating.
Groves said: “The strong housing demand means it’s a great time to put your property on the market, particularly due to the upward pressure on prices. We can expect prices to continue to rise in hand with demand but if the number of homes for sale continues to fall due to falling confidence, there’s a strong possibility of the market stagnating.”
Growing economic uncertainty following the Brexit result, and in anticipation of the changing political landscape, has added to the unpredictability of the market. This will add to the impact already seen following new legislation, such as the rise in Stamp Duty earlier this year.
Groves adds: “While sales volume is on a level comparable to pre-Brexit, if people were to defer their decisions in the face of uncertainty we could see between a 5-10% reduction in transactions for the second half of the year.”
Lomond Capital acquired Thornley Groves in September 2013, and has subsequently added to its Manchester sales and lettings operation through the acquisition of Penny Ashton, Vital Space, Barlow Costly and Shepherd Gilmour. Thornley Groves, which has 10 branches in the City Centre and South Manchester, manages 3,000 rental properties worth £585m**, and in 2015 sold 865 properties worth over £205m.
**based on average home prices