Property Market Update March 2008
For many financial forecasters, 2008 was due to see a significant depression in property transactions and market interest generally. So, were they right?
The Telegraph quoted on this leap day that “UK house prices fell for a fourth consecutive month in February 2008, but the prospect of Britain sliding into recession is "remote", according to the latest survey from mortgage lender Nationwide”.
To echo this, I heard on breakfast news that the average house price has dropped for the same period dragging the annual rate of growth down to its lowest level since November 2005 at 2.7pc. This is due to continued credit crunch pressure and, as ever, according to this presenter anyway, the press majoring on the reducing house price issue.
Fionnuala Earley, Nationwide's Chief Economist, said that while the house price inflation in recent times was clearly over, the UK housing market was unlikely to follow the US, where house prices fell 10pc in 2007. She said: "There is currently an unprecedented amount of uncertainty about future economic conditions, but if the Bank of England's central projection that the economy continues to grow is correct, conditions for the UK housing market are perhaps less gloomy than some would have us believe."
The Bank of England has already cut interest rates twice in recent months, leaving them at 5.25pc, but members of the Monetary Policy Committee have cautioned in recent days that inflation is likely to stop them cutting rates aggressively.
Our newly relocated Worcester office continues to experience a strong level of general interest, new instructions and a very voiced applicant data base, still keen on ensuring their details are correctly registered. Whilst activity may have lessened in the “high street” residential market, rural properties – especially those with land – continue to attract a high level of demand. In fact, in certain, circumstances, sales are being negotiated off the market due to high levels of interest.
With bare agricultural land prices now reaching record levels, has this propped up the rural residential market, or are the two completely unrelated?? Comparable evidence has shown over the years that with the right address, price, timing and marketing campaign– certain properties will sell almost irrespective of the overall market conditions. This is still very true of the early part of 2008. We summarised in our quarterly property sales meeting just yesterday, that there are still numerous buyers looking for the right property.
Whilst I am not suggesting that the property market is booming, one national agent, for example, recently told me that they had carried out more viewings during the first two months of 2008, than the equivalent period the year before. I couldn’t disagree….
- Ashby de la Zouch
- 01530 412821
- Banbury
- 01295 271 555
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- 01565 757970
- Market Harborough
- 01858 410 200
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- 01949 851815
- Southampton
- 02380 883150
- Stafford
- 01785 220 044
- Worcester
- 01905 453275
