The Islands Property Market - The Outlook for 2010 By Charles Spence, Director & Head of Sales at Christopher Scott Ltd

Following a cautious start in 2009, the Islands property market generally faired better than most would have predicted at the start of the year with a good degree of activity, particularly later in the year across most sectors of the market. Whilst lack of supply remained an important factor, we were pleased by the resurgence in the second home market with a number of sales of well located coastal properties achieving a lot of interest and in a number of cases competition yielding offers significantly over the guide prices. Examples of this included Alexandra House in Cowes and Red Cross Cottage in Seaview. Whilst the Island perhaps suffers from an enhanced reduction in activity and purchasers viewings over the winter months, the prospects for good quality property look good, as long as they are priced correctly and marketed to mainland purchasers. Whilst the second home market remains particularly important in Seaview, Bembridge, Yarmouth and Cowes, we are seeing the trend continue for a diverse range of purchasers to relocate to the Island in search of an improved lifestyle. A good proportion of these purchasers wish to purchase property close to mainland ferry links, particularly if part of their working life is based off the Island, whilst others specifically look for a property which can bring an income, for example from holiday lets.

Availability of mortgages remains a concern although there are signs of improvement. Clearly this lending is required in order to keep most sectors of the market moving. There is no doubt that low interest rates have also helped reduce availability of stock on the market and also encourage purchasers to put their money into bricks and mortar. This may well change as the year moves on.

We expect that, there may be limited new stock coming into the market during the first couple of months of 2010 with a likely influx of properties in spring and early summer. A general election can often lead to a degree of uncertainty and a consequent lapse of buyers committing. To those that look to brave an early launch onto the market, we anticipate there is some brisk trade to be done given the amount of pent-up demand that has built up, waiting for the right property.