Weathering the Storm
The effects of the recession were still very much with us during 2011 . Based on the years prior to 2008, the number of properties on the market was significantly below average. Similarly, the number of mortgages being offered, was again, well below the 75-80,000 offered three years ago.
On a more positive note, house prices in the York and North Yorkshire have fared better than many other areas of the country and the percentage rental return for student lets in the City of York are amongst the highest in the country. Estate agents will, no doubt, be encouraging property owners to market their properties in early spring before a higher supply causes the prices to fall back. They should also be alerting any investor buyers in York of the Article 4 Order being implemented on 20th April, 2012, by City of York Council. This will require planning permission to be sought for ‘change of use’ on a property being let for the first time to three or more non related tenants. This deadline could well result in a flurry of investment property purchase and lets before that date to avoid the planning permission process.
Any potential buyer must consider carefully when to enter the property market. If a suitable property is found what should they pay and would it be wise to delay purchase in the hope that prices may drop again. Or, do they agree a purchase and secure a mortgage at the current low rates.
The most compelling reasons to buy or sell a property are usually based on personal and financial needs. Be it a change in circumstances through bereavement, the break-up of relationships or financial difficulties. In more positive situations it can mean getting on to, or moving up the property ladder, investing spare cash or simply relocating. Whatever your needs in 2012 it is important to ensure that you employ professionals. Experienced estate agents, solicitors, mortgage advisers and surveyors who will act in your best interests, help you navigate the choppy waters of a fragile market and weather any potential storms.