maRkEToutlook
Fionnuala Earley, warns that, according to
the company’s Consumer Confidence
Survey, consumers still think prices will fall
over the next six months and Housing
Economist at the Halifax, Martin Ellis,
agrees; “Rising unemployment, low
consumer confidence and the reduced
availability of credit are all expected to
exert downward pressure on the housing
market over the next few months, so
further house price declines are likely.”
However as Fionnuala points out,
significant moderation in the rate at which
they will fall along with the recent rise in
buyer enquiries and increase in house
purchase approvals, are positive and have
While affordability encouraged some to suggest this is the Whilst we see an
turning point in the market. But the facts
is more favourable still remain; “While affordability is more improvement in
favourable and there does seem to be some
and there does seem cautious optimism… it’s still far too soon to 2009, we will not
say that this is the start of a solid revival in
to be some cautious the market. The housing market is very see the start of a full
sensitive to income and, as a result,
optimism… it’s still conditions in the labour market are crucial recovery and
to its performance. The economy is now in
far too soon to say the deepest recession since the Second property price growth
World War and unemployment is
that this is the start continuing to increase with the latest data until these macro
showing it breached the two million mark.
of a solid revival in Even though negative inflation will mean elements of the
that real earnings will be increasing, it is
the market.’ likely to be some time before this feeds into economy improve.’
a strong enough change in sentiment to
fionnuala earley, nationwide encourage a full scale revival in the housing dominic agace, winkworth franchising
Anecdotal evidence from South West London
market.” This is a view shared by many;
sentiment is significant.
Miles Shipside of Rightmove says,
“Sentiment is turning more positive, with a
majority of potential buyers feeling that we
are seeing more price stability. There has
been an upturn in activity, which has to be
put into the context that sales activity has
improved but from a very low base, but
where property is competitively priced and
often around 20 per cent below peak boom
prices, then buyers who can proceed are
active. Mortgage lending is still very
restricted, so a return to a traditional
market or volumes is way off.”
Before the increase in the stamp duty
threshold, average house prices were above
the threshold limit, of £125,000,
everywhere expect the Northern region
but the typical house price is now below
the new threshold everywhere except
gauden road sw4 London and the Outer Metropolitan
Marketed at £285,000, this flat attracted four serious bids and it was finally agreed at region, according to Nationwide. For first
£5,000 over the asking price (Mid May). time buyers, only London has a typical
PROPERTYdrum JUNE 2009 35
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