Demand remains reasonably strong for all types of water and leisure property throughout the UK, yet over the first three quarters of the year we have seen a lack of properties coming to the market. Some vendors are waiting for the outcome of Brexit before committing to marketing and it may be at least another three to six months before we see a higher number of properties coming on to the market.
In the meantime, properties currently for sale at realistic guide price are generating good to high levels of interest. During 2019, just over 75% of properties marketed by Fenn Wright have either been sold or are currently sold subject to contract. This is in contrast to 70% throughout the whole of 2018, reflecting the shortage of supply and relative options available to buyers in the market. As a result, we have seen buyers widening their search in terms of both location and criteria. This also means the time of year has become less important to a buyer, who may be in the market for some time, waiting for the right property.
Lifestyle businesses and specimen carp waters with some form of accommodation are still in the highest demand. We are also noticing a shift in the attitude of corporate investors who have identified that in some cases, larger fisheries are more suitable for either lodge or caravan park developments, both of which command a premium where accommodation can be placed close to the water.
Finance is available from certain high street and specialist lenders for sites with an operational business, supported by strong accounts. In this regard, a specialist broker is often crucial in successfully achieving finance. Chains of transactions have been a common feature of the market over the past 18 months, reflecting a change in purchasers attitudes. Over the first three quarters of 2019 however, around 60% of sales have involved buyers with the ability to proceed without the need to sell a property. Our advice to vendors is to try to be at the top of the chain where possible, in order to minimise the number of links in a transaction and ensure a more efficient sale process.
If you are thinking of selling or would like a no obligation discussion about your property, please get in touch.