Shortage of property coming to market
After a much busier summer period, agents nationally are reporting a shortage of property coming to the market. This is reflected in the local market where the number of sales have increased over recent months, but the level of instructions has fallen dramatically. Startling headlines in the national press of property booms are certainly not visible locally and probably only true in the fashionable areas of London.
There is however, considerably more confidence in the housing market and the Help to Buy scheme rolled out recently will help buyers who would otherwise have had to save for years. There is only a small number of lenders who have signed up to the scheme, at present, although potentially more will join. The scheme enables buyers to purchase with a 5% deposit and to borrow another 15% from the government at 0% for five years.
We are however, in a different market here in Dartmouth and the numbers of first time buyers are limited. A general improvement in confidence, however, has affected us and has been borne out in the number of sales achieved over the past six months.
As we look forward to next year, it is almost certain that we will see a continuing improvement in the market but without the heady price rises seen in London. I must again make a plea to potential sellers not to wait until the spring. Yes, the sun comes out, hopefully, and the gardens begin to look better and maybe there will be a few more buyers about, but with the levels of instructions that generally come to market during the spring period, the market can get deflated. We are urgently in need of fresh properties.
The Office for National Statistics has just announced a surprise monthly drop in house prices. Its house price index fell from 186 in October to184.9 in November. Once the figures have been adjusted for seasonal fluctuations, prices showed no change between the months of August and September. Over the year, annual inflation, according to the ONS, rose from 3.7% in August to 3.8% in September, but then we have to take into account the London effect. Despite the pause in prices, the economists said that the long term trend was still upwards.
Richard Blake 01803 832288 www.richard-blake.co.uk
First published December 2013 By The Dart
