The first quarter of 2010 has seen the market moving in fits and starts, with periods of strong activity interspersed with inexplicable lulls.
This irregular pattern has been reflected in the level of prices achieved, with some properties selling for between 5% and 10% more than they would have been last year and others actually selling for less.
One significant feature of the market is the continued scarcity of first time buyers, undoubtedly due to the size of depsoits now required by mortgage lenders. Saving at least £10,000 or more probably £15,000 for a young person or couple is extremly difficult, even more so if they're paying rent and taxes as well.
The apparently generous increase in the Stamp Duty threshold to £250,000 in the Budget will have little impact in the North Derbyshire House market where very few First Time Buyers can afford over the previous starting point of £125,000. Giving Tax Relief to parents helping their children to raise a deposit would have been a much better idea.
Looking forward, the looming Election, allied to unchanged mortgage availability will continue to suppress the market, but look out for a post-election mini boom as long as its not a hung Paliament.
Neil Hunt BSc FRICS
