Weathering the storm properties seasonal shift
As we emerge from the cold, dark days of winter to welcome the lighter, warmer days of spring, property professionals are currently pondering on how changes in the political and financial climate will affect the residential property market.
Even though the situation has improved since the downturn in October 2008, as we start 2010 the current recession’s effects are still apparent. We are still finding the number of properties on the market at 20-30% below the average for the years 2003-2007 and the numbers of mortgages being offered per month well below the 75- 80,000 granted before September 2008.
Yet homes, especially those in established residential areas near popular schools, are attracting increased prices fuelled in part by the lack of good quality properties available. Estate agents are encouraging property owners to market their properties in early spring before a greater supply causes prices to drop again; however, set against this active encouragement to enter the market, a property owner must weigh up the potential saving that may be enjoyed if HIPs are abolished- a current proposal of the Conservative Party.
Buyers too must consider timing their entry on the scene; if a suitable property is found what should they pay? Should they delay in the hope that the price may drop again or do they agree a purchase and secure a mortgage at the current low rates (assuming that they have at least a 20% deposit)? All buyers need to be alive to the fact the types and levels of loans made by lenders may change if they are required to implement the recommendations contained in the FSA Mortgage Market Review of October 2009.
Of course, the most compelling reasons to buy or sell a property are personal and financial, be it through circumstance: a death, break up of relationship or financial difficulties, or more positively increased income, family, a relocation or investment. Whatever your needs it is important to ensure that you employ experienced and proactive professionals: estate agents, solicitors, mortgage advisers and surveyors, all of whom will act in your best interests, achieve what you need and help you weather the storm.