Doom and Gloom ?

Well, all the advice is that house prices are falling and that there is no expectation of any price rise during the next year. There is a shortage of first time buyers as you need to provide at least 15% deposit to secure a mortgage. But why should there always be the expectation that house prices must go up ? Salaries are not going up and everyone is much more conscious about cutting costs. The cost of a house is increasingly outside the reach of people's incomes.

Ultimately most house buyers are looking for a home not just an investment. Sellers need to be realistic in their expectations if they want to secure that sale and buyers, if you can secure a mortgage there are some nice properties at a good price out there.

HIP free at last

Home Information Packs (HIPS) have now been abolished although properties for sale will still require an Energy Performance Certificate so all those energy assessors out there will still be needed to carry out this part of the transaction. I was never sure how much notice people took of the energy certificate : it certainly is not the most important factor when deciding whether to buy a house but I have seen a couple of properties now where extra loft insulation or cavity wall insulation was put in after the original certificate was carried out so someone was be taking notice.

I'm glad to see the back of HIPS. They caused so much confusion from the conveyancing point of view and often seemed to slow up the process which was not what the ( then )govermnment said was the stated aim of the things.

There now seems to be a flurry of properties going on the market before the emergency budget to try and avid the likely increase in capital gains tax so it's a good thing I'm not planning a holiday in the next few weeks.

A New Year

Well it is now 2010 and the housing market is predicted to .. well not sure really, some say one thing and some another. Basically if houses are in short supply, then prices will go up. There are certainly more mortgage products available if not quite so competitive as we have been used to in the past and a few more first time buyers out there tipping their toes into the market. However one commentator even suggests that fewer people would want to move this year because of the World Cup implying that they would rather sit in front of the television than even think about moving house. (Law Society Gazette 14 January 2010- Paul Marsh ). Will this bring more visits to a divorce lawyer instead ? People move house for all sorts of reasons, usually because they need to accomodate a growing family, or a move to a new job. Uncertainty about unemployment or affordability is probably the biggest reason people are reluctant to move, with or without the World Cup.

Accidental Landlord

Are you an " accidental landlord" ? Perhaps you decided to hang on to your existing house and rented it when you bought your new property . A survey from the Nationwide Building Society today highlighted this as an increasing trend over the last year. The effect has been an increase in rental properties - and a drop in the amount of rent you can charge. The opposite side of the coin is the shortfall of properties up for sale, which increases house prices because of the demand.
What everyone wants to be able to predict is what happens next ? The Stamp duty threshold goes back to £125,000 at the end of this year so anything over £125,000 will attract stamp duty at 1% of the purchase price . The current threshold of £175,000 was due to run out at the beginning of September but was extended by the Govermnment to 31/12/09. That may affect the number of properties being sold in the early part of next year.