A North East estate agents says house sales in the region are jumping ahead of pre-pandemic levels as demand outstrips supply, partly as people relocate to the area during the pandemic.
Caroline Pattinson, managing director of the family-run Pattinson estate agency, said the pandemic has led to homeowners and buyers to reassess their lives, leading to a competitive market across the UK.
The company, which has 26 offices and its head office at Silverlink Business Centre, has been offering houses and property for sale, rent or auction across the region since 1977, and Ms Pattinson says the local market has become highly competitive as people look to move North.
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Last year she said the firm’s sale rate was 30% higher than in 2019, buoyed by rapid sales as well as a strong investment market.
She said: “Demand for properties is far outstripping supply. Lots of properties are attracting offers from multiple buyers within days of coming onto the market and there is also a shortage of rental properties.
“We are seeing demand from lots of different buyers, from home owners looking to take their next step on the ladder, buyers moving to the North East from other areas.
“Remote working is definitely driving this for some, as property prices in the North East remain below the national average, properties are considerably more affordable in the region and if being close to the office is no longer a consideration buyers have more flexibility in locations.
“Priorities for many people have changed and being closer to family is driving demand for properties in some areas as people choose to relocate closer to family or to return to their roots.
“We are also seeing high demand for investment properties as rental yields in the North East remain high and demand for rental properties is strong.
“The second homes and holiday let market is strong and we have seen lots of cash buyers competing for properties in Northumberland, particularly in rural and coastal regions. Programmes such as Hairy Bikers, Robson Green and Vera have showcased the fantastic scenery in the region and an increase in the popularity of ‘staycations’ has seen an increase in interest in people looking to buy holiday homes both for themselves and to rent out.”
Her comments have come as Pattinson published accounts for 2020, showing how turnover rose 14% to £9.23m despite the challenges posed by the pandemic, including the initial closure of its offices for the first six weeks of lockdown. Operating profit also jumped, from £108,264 to £1.64m. The final profit for the year rose from £202,778 to £1.33m
Commenting on the accounts year, Ms Pattinson said: “2020 had started as a really positive year with increases in sales and rentals in January and February, the brakes were temporarily put on when we went into national lockdown, but the restrictions were lifted on the property industry by mid May and the market bounced back.
“The introduction of the Stamp Duty holiday was in my opinion unnecessary as the market was strong prior to the lockdown and it had already bounced back as soon as the market re-opened. Whilst there was pressure for some transactions to beat the deadline, since the holiday ended the market has continued to be strong, with demand outstripping supply.”
Ms Pattinson also paid tribute to the firm's staff.
She said: “We were fortunate to be able to work from home with relative ease. Our computer system and telephones are cloud based so we had staff working from their kitchen tables, spare rooms and even a garden shed selling and renting properties.
“I am delighted to say that in 2021 our results improved on 2020 and again this in huge part down to the team we have who have worked tirelessly and dug deep whenever they needed to do so.”
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