12
May
TIME FOR A MOVE
Andrew Wagstaff of Bedfords looks at the state of the
property market in the light of the election result.
"It’s not just the Camerons and the Browns who are moving
home. Lots of other people have decided that it is time for a
change. Recent activity in the property market is at levels not
seen for several years, and now the election is well and truly out
of the way there should be even more decisiveness in the
market.
So here is a report on the market that our new government
inherits. It is not a bad picture. Far from it, and many will be
pleased that this coalition intends to see off Home Information
Packs in the fullness of time.
Prices in prime areas have surged back to 2007 levels and - in
some key locations ¬- have exceeded even these. Most other
areas have seen prices rise but not to such a generous extent.
First time buyers have not exactly rushed to take advantage of
the £250,000 stamp duty holiday set in the last budget, but
this is seen as a direct result of there still being some
difficulty in agreeing mortgage loans and having to find large
deposits. As lenders become more accommodating to borrowers, and
more competitive with each other, this situation should improve
greatly.
But the big issue is at the other end of the market. Larger
homes are coming onto the market in greater numbers. There is clear
evidence that most owners of these want to downsize, seeking less
but often more contemporary, well-equipped and thermally efficient
space. There are many reasons for this – releasing equity for
children’s education, helping offspring with mortgage
deposits, labour saving, lower day-to-day running costs, lifestyle
relocation, provision for pension, etc. But whatever the reason it
goes hand-in-hand with a prevailing concern that the next few years
are not going to be so benevolent to those living far beyond their
reasonable housing needs.
This will put greater pressure on good, middle market homes
where prices should respond positively to demand. Larger, older
houses away from golden postcodes will still sell, but accurate
pricing will be crucial and the days of highly optimistic asking
prices in this area may be over for some time to come.
It is manageable, top end houses possessing high specifications
and located in the most fashionable of hot spot areas that will
really attract the new breed of city bonus spender.
So in these turbulent times, both politically and economically,
as we all tackle the real fallout of the recession over the coming
months, our advice is this. If you are a first time buyer, save,
save, save and then buy carefully within your means. If you are a
middle market buyer or seller the market is rather rosy for you if
you price to sell and buy prudently. If you are a top end seller
then get your relocation in first and be fiercely competitive with
your price - before many others decide, like you, that downsizing
can be both fun and liberating."