Grounds For Optimism

Friday, 22 October 2010

According to a recent survey of National Association of Estate Agent members there are continuing grounds for being very concerned after this year and last year's slump in the housing market., 
This looks like continuing for sometime ahead. Some say it could last another five years.

Since the beginning of the year, NAEA members have seen a significant decrease in demand, especially on the sale side, and one third of agents have reported a 10% decrease in properties coming onto the market compared to six months ago.  There are without doubt buyers out there and agents are registering potential buyers..

In addition, there has not been much interest from developers in the number of new homes being built.  According to the NHBC there has been a general slow down in applications for new starts for the third rolling quarter in a row.    

Major concerns are job security and the lack of liquidity in the lending market and banks and building societies need to be pressed to do all they can to aid the recovery.

The indications, though, are that there is a continued recovery and growing activity in the renting market and with mortgage interest rates at low levels and house prices still too high for the current market conditions, home ownership have to look at whether renting their properties is the best option for the next few years at least. 

English Rose Properties
October 2010