September Update

Already this year we have seen conflicting reports, some of price increases and others of falls. There has also been speculation of a 'double dip' recession, with widespread re-possessions.

Our assessment of the current market is that, whilst prices have been fundamentally stable, it is very slow with an average sale time of six months. In addition to the general economic situation, the factors influencing this situation include the following:-

1. The number of first time buyers is at an all time low. Large deposit requirements, penal credit scoring and shockingly high interest rates (Bank Rate 0.5% but Mortgage Rate 6.5%!) have all combined to keep young people off the property ladder. The knock on effect of this is that it is very difficult to get chains tied up.
2. Fortunately, there are a lot of people investing their money into property, both for their own occupation and as buy to let investments
3. Abolition of Home Information Packs has produced a glut of property onto the market
4. The availability of sale price information on the internet to prospective buyers has made them very well informed and extremely keen to get value for money with most agreed sales being below the original price.

If the flow of properties onto the market continues to increase and nothing is done to address the mortgage situation, prices will inevitably come under downward pressure.