When will prices start picking up?

publication date: May 12, 2009
author/source: Kate Faulkner

As rental properties are slowly filled with those ‘would be First Time Buyers’ rents will start to rise and hopefully when 90% lending comes back in, many of those that would have bought and sold will start to enter the market again. A lack of supply of properties versus increases in demand will start to push prices up in some areas, while other areas will just see a welcome increase in the number of buyers and sellers, with property types short in demand (such as character properties) likely to increase while others won’t move at all.
The market will really start to recover when unemployment figures start to fall and we see developers increasing the number of new builds from the currently low levels of around 70,000 back towards the 240,000 properties they were building.

What does this mean YOU should do?

First Time Buyers Should you Buy or Rent?
If you are buying and staying in the home for five+ years go for it, as long as it’s the property you want and you can afford the mortgage. Prepare for disasters such as losing your job or becoming sick ,through insurance and having some savings put by, just in case!

Look out for specialist buying and selling schemes, such as HomeBuy Direct; Open HomeBuy and other ‘low cost home ownership’ schemes.

If you are buying and moving within five years, then consider renting for a little while longer, at least until we see unemployment bottoming out and 90% mortgages coming back in. Bear in mind that the rental market is typically in your favour, as rents are still low at the moment, so secure a good rental deal and save, save, save.

Thinking of Buying New Build?
Then think seriously about it as now could be the best time ever. The 10-20% premium that new builds usually charge over second hand homes has gone. Prices have dropped on houses, if not all flats, probably as much as they can and most developers are happy with their current sales.  See our New Build Survey.

Can’t sell and are Desperate?
Two things to try, firstly if you are trading up and are happy to buy new build, then see if you can do a deal with them under a Part Exchange Scheme. If you don’t qualify or don’t want a new build, then make sure your property is being sold by the right agent and priced competitively versus others. If there are four similar properties for sale, one at £205,000; one at £199,000; one at £195,000 and one at £190,000 then the lower priced properties will sell first.

Struggling to sell your home and want an independent but professional valuation, then contact us.

To find out how Designs on Property can advise and help with all your property related issues, visit the One to One Support section of the website, contact us or call 07585 897128.

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
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