As I write this, the last few days have had a decidedly Autumnal feel and it doesn’t really feel like Spring. Traditional April showers have been lengthy and make stories of water shortages and hosepipe bans seem somewhat unreal.
Fortunately the housing market has a more positive feel and outlook. Yes, the artificially induced increase in the number of first time buyers has reduced following the end of their stamp duty “holiday” at the end of March but activity in that sector has seen an increase in the number of buy to let investors seeking property in order to meet the high demand for privately rented accommodation.
Towards the end of April we saw two major indicators emerge that confirmed the current fragility of our economy.
Firstly there was good news announced when the unemployment figures fell, albeit to a, still high, 2.65 million. This news was followed a week later by an announcement that the UK was officially in recession due to two successive quarters of “negative growth”.
Again, whilst no-one is underestimating the challenging economic situation, the property market in London and the South East is holding up well and prices remain steady and strong.
Naturally the variable economic news does little for confidence but expert opinion is that we will see positive growth during the rest of 2012 and start making a slow but positive move out of recession.
I believe that the housing market will see a period of flux with house prices remaining fairly static and buyers exercising discretion in making offers and committing to buying.
Sellers who are over ambitious on price are likely to see a slowing of activity and may struggle to secure a sale but those who are realistic, the market will be positive with demand continuing to outstrip supply.
The lettings market remains strong but the significant growth in rental values cannot continue unabated and there is growing evidence of tenants being unable to meet their obligations, particularly if faced with personal financial issues such as reduced income due to a lack of overtime, bonuses or redundancy.
My view is that now is time for holding one’s nerve and taking a sensible and pragmatic view. Those that want or need to move can do so with the right approach. There are nearly twice as many 95% loan to value mortgage schemes available today as there was a year ago although lending criteria remains tight.
Now could prove to be an excellent time to move but professional advice and assistance will make all the difference and make for a positive outcome.
At Sansome & George our staff will, as always, welcome your enquiry and look to help you every step of the way.
David Sansome
Managing Director
