TIME TO MAKE A MOVE!

So much for the property pundits! This time last year we were all being told that the market was sliding into an abyss of repossessions and analysts warned of a further 20% off property values. In the event it turned out to be difficult but not impossible and the second half of the year saw a steady improvement in trading conditions. In fact the Nationwide now reports that prices actually increased in 2009 by nearly 6%! Clearly trying to predict what our property market is going to do can be a mug’s game. Perhaps it is best not to try and instead simply set out to do our own thing.

Potential sellers must be encouraged. Demand currently outstrips supply. There is considerable pent-up demand from those who have seen their efforts to move frustrated by recession and agents are continuing to experience keen interest in all price ranges. The ‘traditional’ buyers (first time buyers, investors, and those retiring or relocating to Devon) are back in force and developers are actively looking for the opportunities that will generate their income next year. Furthermore, the unwelcome upfront costs of buying a Home Information Pack have now been reduced to more palatable levels. Perhaps most important of all is the general recognition that the worst might be behind us - a recent survey found that over 80% of home-owners believe that the value of their property will rise over the next six months.

Purchasers can now look forward to more properties becoming available as sellers recognise that prices are no longer falling. Interest rates remain at historically low levels and the banks are coming under increasing pressure to relax their lending criteria and free-up mortgage funding. They will keep in mind that the ‘noughties’ saw house prices increase by 117% (Nationwide) – not a bad return for those able to take advantage.

Individual homes in the better locations will continue to provoke strong interest. An excellent example is ‘Rathgar’ in the small hamlet of Clapham (photo above and brochure available on this website) which combines easy access into the city with the best of semi-rural living. The versatile layout, excellent garaging and outbuilding, swimming pool, and beautiful countryside give it a very broad appeal. At £395,000 it compares very favourably with the relatively few properties available elsewhere.

At long last those serious about moving can approach the New Year with confidence – they can certainly expect a warm welcome from their estate agent!

Mike Henderson

Partner