When the financial times asked for my views on property in Margate…..
Its always nice to be complimented on your articles, but recently I was asked to comment for an article in a national newspaper. I thought I’d share the interview and the views.
Q. On noting the speed at which property prices had been going up in Margate but levelled off over the last year, my interviewer asked by how much and why?
A. We would agree that prices have calmed a little. However, there is still a strong demand. There tends to be a more specific buyer interested in the closeness to the old town and sea front and particularly period homes with architectural features. The second factor influencing prices slowing is thanks to the rental yield. This will partly be to do with the new restrictions on mortgage lending for landlords, but many investors are driven by the yield. The average yield seems to be running at around 4.50% right now. We’ve also witnessed some buyers who demand a bigger return preferring to move onto other areas.
Q. Property prices are dropping off in London at the moment. Has this effected the market in Margate?
A. The number of buyers hasn’t really slowed down. This is probably due to the increased popularity of the area. As more buyers come here, it becomes trendier and those families start to relocate to be with family or likeminded friends.
Q. Are transactions up or down over the last year?
A. We have seen a definite increase in the number of transactions.
Q. Do you get the sense that there are a disproportionately large number of artists/creative buying in Margate, or is it just that they're the ones we're aware of?
A. There is a huge market of artists or creatives buying in the area. These fall into two types. Those who are creative and spend time and investment “upscaling” homes and some who will be buying the finished product.
Q. Are developers building new homes to cater to the influx of new buyers, or are there enough existing homes?
There are lots of new but small developments being built but being an island, we are limited on how far geographically we can go.
Q. Slightly off topic, but do you have any idea why council tax in Thanet is so high?
A. Don’t even start me…….
Q. What do you anticipate happening to the property market over the next two years?
A. My view is that the type and style of buyer along with ability to buy will continue for the next few years as more investment comes. There is a greater sense of optimism in the town thanks to the opening of higher quality hotels and accommodation. This has been driven not only by the Turner centre but also by the investment in Dreamland. Rather than simply a theme park, the owners /trust have been very strategic in planning major music and themed events which attract both creative people and younger consumers.
Category: When the financial times asked for my views on property in Margate…..
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