There is lots of speculation in Truro at the moment about what the market will do in the coming months. Historically the period before an election puts the market into a 'quiet slump', as people hold off on making decisions about buying or renting a property until the result is in. Once the 'votes are in' the market normally sees a 'spike' in activity as buyers take advantage of the new government and the effect it has.
Truro and the surrounding area is seeing lots of developments being built recently, with plenty of investment property and family homes coming to the market. The CPA (Construction Products Association) this week announced that construction output nationally is set to increase by 5.5 per cent this year, but will slow to 4 per cent in 2016 and 3.4 per cent in 2017, due to uncertainty relating to Government policies, such as Help to Buy. This ongoing development will certainly feed the demand for property in the area but the speculation is questioning whether or not it will adversely affect prices.
This week I was speaking to a landlord of ours about the possibility of selling his house. I advised him that now might not be the best time for him to sell his property. He bought it 8 years ago as a new build. Today if he was to sell it would be up against new build properties with 10 year NHBC guarantees and the buyer's choice of kitchens and bathroom finishes . all this, and at a price that makes it very attractive. The price he paid 8 years ago is also quite a bit higher than these new build properties, and selling for the same price he paid would be hard.
My advice? Keep renting for now. The yield is good and it's paying off his mortgage for him. In 2-3 years the development surrounding Truro should have finished up giving buyers less choice. No one has a crystal ball but perhaps for this particular landlord, keep renting, for now at least-..