Lees Solicitors - 2010 sees Steady Signs of Recovery in the Housing Market - Joanne McNally

Residential Conveyancing News

2010 sees Steady Signs of Recovery in the Housing Market - Joanne McNally


2010 sees Steady Signs of Recovery in the Housing Market - Joanne McNally

2010 sees steady signs of recovery in the housing market but what are the predictions for the UK property market over the next 12 months? - The National Association of Estate Agents (NAEA) has this to say:

Predicting a market hugely dependent on how much lending will be made available. The Association said house prices could remain flat, or, in some markets possibly drop slightly, for the first six months, before picking up again and remaining stable in the second half of the year.

Supply will remain stable in the run up to the General Election, after which there are likely to be more houses available for sale, particularly if Home Information Packs are scrapped. The NAEA believes the General Election will cause a lull in activity as people adopt a "wait and see" approach, however a number of buyers will continue to take advantage of lower interest rates and lower priced property and the continued presence of first-time buyers will be critical to market success.

Peter Bolton King, chief executive of the NAEA, said: "While not being a brilliant year, 2009 was for many agents much better than the year before. In 2008 many couldn't see how they would survive, in 2009 for a lot of agents there was at least enough activity to keep the business going. This was certainly a year of survival of the fittest and those able to offer a first class service. The beginning of 2010 sees several things happen. The stamp duty holiday will end, despite warnings from much of the property industry that this is a mistake, and this has the potential to reverberate around the market"

He also went on to say, "In recent months the market has witnessed a slight increase in housing prices, driven largely by the fact that, in some markets, demand is outstripping supply. If more property comes onto the market the house price rise will flatten or, in some cases might fall slightly over the first six months of the year. During the year we have however seen a pick up in demand as many take advantage of lower prices and interest rates. This clearly indicates that the British public still believes that investing in bricks and mortar is the right thing to do"

Finally, he stated that, "There have been encouraging levels of first-time buyers throughout 2009 and I would hope this continues into 2010. Again, the situation with lending will have an impact. The NAEA believes that responsible lending to responsible people is crucial to any recovery."

But speculation and prediction alone may not be enough to encourage first time buyers or even individuals who have enough equity in their existing property, to seek to re-mortgage with a view to purchasing additional properties. So what do the statistics show?
On 26th January 2010, the British Bankers' Association released figures showing that the number of mortgages approved, jumped to the highest level for more than two years in December. During November 60,518 loans for people buying a new home were in the pipeline, the highest level since March 2008 and more than double the record low of 27,162 seen in November of that year. In a further sign that the housing market is continuing its recovery, total mortgage advances rose by 6 per cent during the month to reach £10.2bn, a level last seen in November 2008.
With this in mind now would appear to be as good a time as any for the prospective purchaser to consider getting their foot on the ladder or for the current investor client to consider expanding on their property portfolio and we at Lees Solicitors LLP can help you achieve your goal, by providing a speedy and efficient legal service.

If you are looking to sell or purchase a property, please contact the property department at Lees Solicitors LLP on 0151 647 9381 where we will provide an estimate of our legal fees together with a breakdown of the additional search fees required in each case. This will enable you to budget properly for your transaction. Alternatively please email us at info@lees.co.uk

Joanne McNally

 

This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.

 


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