I think 2012 is going to continue much the same. Main stream property may see a further fall in price albeit a small one. Those ‘best in class’ should continue to attract a premium as prime property remains scarce. The upper end of the market is particularly short of supply. Pricing will be key at all levels and despite a shortage of stock vendors will not pay inflated prices unnecessarily. Hopefully, the fact that interest rates are due to be kept low for the foreseeable future should encourage people to come to the market.

The return of the schools in September historically kicks off the Autumn market but stock levels are low and as such now would be as good a time as any to put your property onto the market. There seem to be a number of properties being re launched having failed to sell either earlier this year or even last and surprisingly, at the same price as before. Others who needed to move on have put their property up for rental.

Although a lack of supply will always drive demand the key to a successful sale is still realistic pricing. Over pricing is just a waste of everyone’s time and will leave vendors and buyers alike frustrated.  With the demise of the HIP agents are continuing the practice of marketing quietly; usually to test the market and save the expense of full marketing.

For those lucky enough to have secured a mortgage they will be continuing to enjoy the low interest rates. Unfortunately, for those trying to get on the ladder times remain challenging. The Halifax report that the cost of buying a home for first-time buyers is now more than £100 a month lower than renting so if you are able to perhaps get help from the bank of Mum and Dad it would be beneficial.

As is always the case in this area there are more people looking to buy than properties available but more than ever those buyers are being slow to commit. There seem to be an increasing number of sales falling through this year as, for example, a mortgage agreed in principle is turned down or simply because the purchaser gets jittery about making the wrong decision.

Quality property priced competitively will sell in any market. This was proved recently when a country house near Marlborough was marketed at £2.75 million and sold for £7 million. This may seem madness but there are few such houses in the area and someone was obviously determined to secure it at any price.
Equally, if there is anything at all to put a buyer off at the moment, the property can languish. This is particularly the case if ambitiously priced. Vendors must make sure they have done all they can before marketing to show the house in it’s best light.

However, even in the slowest of markets people do still have to buy and sell houses. If you are selling, use a reputable agent who can demonstrate they know the market and can quantify their valuation. If you are buying, do your homework and don’t be rushed.

…..alternatively, you could employ a buying agent!

This is possibly due to potential vendors  sitting tight  in the hope that the economic growth prospects improve. More optimistically, they have been taking holidays or using the time to prepare their property for sale later in the year.

The London market is performing exceptionally well against prices here. Those wishing to cash in and move to the country may well get good value now although prices for prime property will be kept up due to lack of supply. As always those wanting to buy must have their finances in place.

Although there is no sign of actual distress in the market it looks like activity will remain low.

The Easter weekend was traditionally when agents started marketing properties but this year the holiday comes late and close to two other bank holidays. Also on the 6th April there is  a new level of stamp duty coming in. Purchases over £1m will pay 5%. Hopefully, this will encourage people to consider marketing their properties early on in the year.

With first time buyers still struggling, the middle market is where there will continue to be most activity. There are plenty of  cash buyers in rented accommodation where they have been watching the market for the last couple of years. The lack of  quality property and confidence last year means that with prices hopefully readjusted by the end of the year, this should be the time to move.

It is likely that prices may fall by up to 10% over the year but there will always be the prime houses which buck the trend. As always, if it’s the house for you then be prepared to pay the price.

I would say that prices and activity will remain steady for the rest of the year.

The changes announced in the budget are unlikely to have a dramatic effect on the housing market. Stamp duty for purchases under £250k is under review but a new 5% stamp duty for purchases above £1m  comes into effect in April 2011. It will be interesting to see if this prompts a flurry of activity. The rise in VAT will be softened by the probable continuing of low interest rates keeping mortgage payments down.  The much hyped raise in CGT was set at a more realistic level.

In this part of the world there is never enough quality stock, particularly good family homes in the £700k to £1m price bracket. So far this year there has been less than usual. This tends to keep prices steady. Even rental levels are low making it more difficult for people to sell and then rent while waiting to make their next purchase. Off market selling continues to be popular; easier now with HIP’s gone.

The weather was a hindrance to the start to the year with people unable or unwilling to drive around either to value or view properties. But now it is clearing estate agents will be looking for their Spring instructions. With an election likely in May, there may be properties on the market earlier than the usual Easter launch.
Quiet marketing among vendors seems popular at the moment; This is where an agent is instructed but the property is not put on the open market. The agents will contact serious purchasers and buying agents in the hope of generating enough interest to secure an offer. This is a good way of testing the market and also keeps the neighbours unaware and unwelcome non-serious viewers at bay.

The property market is historically quiet in the run up to an election; Vat returns to 17.5% and the lower end stamp duty holiday has finished.
Unless confidence returns, demand will continue to outstrip supply. We will see competitive bidding and possibly the return of sealed bids for desirable properties.
Without a significant rise in interest rates, those who have been in rented accomodation for some time will be wanting to secure bricks and mortar.

 Contrary to public opinion, there is not neccessarily a buyers market in this area as plenty of frustrated cash buyers are sitting in rented accomodation eager to make a purchase. Continuing low interest rates mean that this group are having to use capital as the interest from sales proceeds no longer covers their costs.

Many properties are achieving their guide prices and in some cases exceeding them. Particularly thin on the ground are good, solid family homes in the £1m-£2m price bracket. Where many purchasers in this price range tend to be quite fussy, even they are making compromises as they see there is unlikely to be any change in this situation for some while.

Having said that, HSBC has just announced that they are promising to lend an extra £500m to homebuyers applying for 90% cash mortgages. They have renewed confidence in the market and feel that prices will not drop much further. Other lenders are expected to respond positively.

In the long term this may help kick start the market but with a general election due next year it may be a while before we see much in the way of an upturn in prices.