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September usually sees the start of the Autumn property market as the public return refreshed from holidays, children go back to school and the light nights begin to draw in, but with just enough time to still go and inspect properties in the light after work for another month.

The local property market here in Hereford has enjoyed a buoyant time with a good supply of property available across both the new build and second hand markets. Due to a good supply there has been a good turnover particularly in the £150,000 - £250,000 price range across the city and the country market.

The market is a little more sensitive in the �250,000 plus bracket as Stamp Duty increases from the threshold of 1% to £250,000 to 3% above £250,000 which is a very significant amount on a property purchase. The lower end of the market in the £80,000 - £150,000 price bracket continues to be strong.

There is a large demand due to two types of purchasers in the market place at the present time; young first time buyers who have to compete with the buy-to-let investors who have again maintained a strong presence in the market during this year.

More and more first time buyers have to rely on parental help to get onto the first rung of the property ladder. A purchase of £100,000 needs a deposit of £10,000 plus a healthy salary to maintain a £90,000 mortgage. In addition are the costs that have to be taken into consideration, fees incurred with solicitors, the building society, survey fees and removal costs.

The part rent / part buy market has met with good demand this year with first time buyers given a helping hand with 50% purchase of the freehold interest backed up by 50% rental payment each month for the other half of the property, which is usually owned by a Housing Association. This is a very popular market place and the current situation is that demand is outstripping supply; hence the market prices have seen a good return on these properties. Typically a two bedroomed, modern terraced house would see a half share realising £65,000 with the other half share rental at between £85-£100 payable per month.

The new build market is still in demand and developers have tried to maintain interest from purchasers by offering part exchange facilities and payment of Stamp Duty to keep continuity in the sales numbers. Part exchange is a popular method used by national house builders to attract sales whereby they have a confirmed sale of the new property and can usually find a purchaser for the second hand property which they are taking into their ownership as part payment for the new property by offering it for sale through local agent at a very realistic asking price.

On the forward planning of residential development for Hereford, national house builders Crest Nicholson South West Limited have recently submitted a planning application for 300 units on a site in Holmer which is located close to their previous site at Wentworth Park. This site, if granted permission, will be a natural progression from previous Crest developments north of the River Wye at Bobblestock, Belle Bank Avenue and Wentworth Park. Crest is an excellent developer with a superb track record in Hereford and a 300 unit development unit would meet with good demand.

Andrew Morris Estate Agents has acted for Crest Homes for over 25 years and believes that the Holmer site will attract good interest particularly from existing local people who currently already live in a Crest Home.

The Holmer site is before the planners now for consideration and an outcome may be known by the end of this year. Subject to this planning consent being granted it could be a real ’spring board’ for the 2007 property market in Hereford with a high class residential development north of the City.