Property Market Report - Q1 2009 |
 |
15th April 2009
Bushells is delighted to report a strong performance during the first quarter of 2009. March was the first month were both sales and lettings target were met and indeed exceeded. This mirrors the positive views expressed in the press confirming an increase in mortgage lending and the number of enquiries from new applicants.
Concerns have been raised over some of the new agents entering the lettings market and is it more important than ever that Landlords and Tenants ensure that they deal with properly accredited firms. It has been noted that a number of agents are offering impossibly low fees in order to generate market share. The best advice to ensure your chosen agent is a member of ARLA or NAEA so you can be assured that the agent is properly insured and qualified. It is worth noting that regulation of letting agents is in the pipeline and Bushells offers full support.
The sales market continues with its unpredictability. The gap between vendors expectations and buyers aspirations has closed and many sellers are look at what they can buy rather than just deciding offers are too low. The criteria placed upon securing a mortgage has reduced the number of buyers able to proceed, however a wave of investors has joined the market as money isn't doing too well in the bank.
There is little doubt that house prices have reached their nadir or are close to doing so. Anyone looking to keep a property for more than a couple of years appreciates that they will probably do well buying now rather than waiting until the lowest point at which prices start to rise.
Simply, the market doesn't appear as bleak as it did 6 months ago. The reports in the press from major lenders reflect that which happened a couple of months ago rather than the current state of the market. It is when offers are accepted that the true state of the market is reflected, not the point at which the sale completes, sometimes 3 months later. Without exception, our offices are more positive and confident that business is improving. The next quarter will be key in ascertaining whether this is the start of recovery or simply a blip after the dark days of winter when the only news was gloomy and the words Credit Crunch were omnipresent.
Now is the time for the Government to rethink their stance on stamp duty land tax and give first time buyers a chance to jump on the housing ladder and add momentum to the housing market.
