A promising start to 2011
After the usual end of year slow down, 2011 has started at a pace, taking many by surprise. I was certainly expecting a slow start but at a recent National Home Network meeting nearly all the agents from South of Bristol to Plymouth were reporting very brisk business in the first two weeks of January. It is true to say that coastal tourist destinations may take a little longer to catch up, but even here demand is far greater than expected.
2011 starts with prices more or less unchanged from a year ago although the trend for 2010 was of modestly declining house prices. With mortgage and lending still tight most forecasts are predicting no change or a slight downward trend for 2011. With the brisk start that we have seen, things certainly look positive and as long as we do not have another prolonged cold or snowy period during January and February I see no reason why this trend cannot continue.
I read a report this week from The New Housing Pipeline showing that through 2010 there was a steady fall in planning permissions granted to developers for new homes with a drop in England from over 40,000 in quarter one to just over 30,000 in quarter three. These figures show an alarming drop from 2007/08 levels and paint a bleak picture for what some are calling an acute housing crisis. This combined with a lack of mortgage finance is putting pressure on the private rental sector with some parts of the country seeing tenants gazumping each other for properties. This of course is good news for landlords after a period of stagnation in the rental market. It seems a particularly good time for buy to let investors to start or increase their stock of properties. I have heard from a local mortgage consultant that there are buy to let mortgages to be had and this is certainly an area of the market that is likely to expand over the next year.
It is great to be able to pass on some positive news in times where the media are painting a bleak picture. Let’s hope it continues.
Richard Blake 01803 832288 www.richard-blake.co.uk
First Published February 2011 By The Dart
