Market Update

The weather may be the hottest for some time but it is coinciding with a cooling of the housing market with reports of asking prices reducing and a slowing from the frenzied market activity seen earlier in the year.

A slowing of the market does not however mean that things are going wrong. The UK economy is the fastest growing in Europe with unemployment falling and inflation at manageable levels. Interest rates remain at historic lows and, whilst almost certain to rise in the next year, the Bank of England has been deliberately signalling its intentions for some time and helping cool the market in the process. This will, undoubtedly mean that any upward pressure on interest rates reduces and fears of significant and rapid change subsides.

House prices are up on the last year with regional, and even local, variations demonstrating that the old adage of location, location, location still applies.

The aftermath of the mortgage market review has seen the process of obtaining a mortgage loan become rather more protracted but we are already seeing customers, lenders and industry professionals adjust to the new order of things. Of course, it can only be sensible for lenders to be prudent in their approach to lending in order to avoid boom and bust scenarios with all the devastating personal consequences that happen when things go wrong.

Planning a move and taking the right advice early on is the solution to securing the right mortgage loan.

An unfortunate by product of the frenzied market earlier in the year is seeing the time it takes to get a sale through to completion increase due to the increased workloads on surveyors and solicitors who were simply not geared up to cope. The increase in the number of linked transactions adds to this situation as sales can only move as fast as the slowest link in a chain of transactions.

A considerable amount of our time is now being spent on managing and steering transactions through to completion.

The lettings market is also steady with rents stabilising and professional landlords taking sensible views on balancing yield with security of tenure. Good quality tenants are being a little more discerning and many are only considering fully managed properties where they know their occupancy will benefit from a proactive managing agent.

Finally, the summer holiday period is bound to see some reduction in activity as people take time out for leisure. However, the prognosis for the remainder of the year still looks good with a “steady as she goes” feel that means people can plan and implement their moving plans sensibly and successfully.

Peter Lawrence
Managing Director