New Year enthusiasm - James Bailey, Henry & James

New Year enthusiasm

At the start of each new year, the first job for any sales negotiator is to speak to all their applicants registered from the previous year. This re-establishes rapport and opens up dialogue as to changing circumstances and it is also good customer service.

Surprisingly, from the very beginning of January, these existing applicants were beating us to the phone insisting that we do not forget that they are still actively looking. This unprecedented demand has come about from the short supply of new property coming on to the market in the second half of 2009. Normally we judge how a year is unfolding by the level of new inquires and valuations we receive. So far this year Henry & James sales inquiries and valuations are up on last January's figures by 28% and 41% respectively which is a strong and extremely positive statistic. With such hurdles as an election, lack of borrowing and uncertainty as to what will happen with interest rates, it would appear that the cloud does have a silver lining. Should we be surprised? My answer would be no, bricks and mortar has proved time and again over the decades to be a safe investment.

It is no surprise that people are turning to property. Even though we seem to have emerged from recession – just – people are still wary. The stock market has yet to regain its previous strength and many companies that seemed solid have folded, leaving investors with worthless shares. Hedge funds are now under greater scrutiny in the wake of Bernie Madoff and banks are offering nearly no returns on savings.

With property, even though prices go up and down, you always have something tangible. What is more, over the long term prices in Britain will go up. The population is continuing to grow and there is a severe housing shortage that shows no sign of abating. After all, this is a relatively small island and they are not building anymore of it. That is not to say that some properties cannot lose value over the long term – as any owner of a house perched perilously on a eroding cliff or even the owner of an ex-council flat in a high rise will attest. However, most property values in this country will go up and it is arguably the safest place to put your money.

James Bailey

James is head of sales at Henry & James. www.henryandjames.co.uk