Outlook remains mixed as house sales stabilise

 

Recent property market statistics and forecasts may seem to have been at best contradictory.
Perhaps this fact is the one true reflection of the market as it stands - a state of confusion.
No-one can be totally sure precisely which way it is headed but there are certain indicators it would be wise not to ignore.
This was neatly summed up by the latest RICS UK Housing Market survey which revealed that the level of completed house sales stabilised at the end of 2010, while the outlook for the property market remains mixed.
In the three months to December, the average number of completed sales per surveyor stabilised at an average of 15.2 (from 14.8). Across the UK, completed transactions were highest in the East Midlands and Yorkshire and the Humber (averages of 19 and 18 respectively). East Anglia recorded the lowest level of transactions, with an average of just 10 per surveyor.
As a result of the adverse weather, estate agents reported the number of agreed sales in December fell to a net balance of -15% (from -14). Worries over the economy remain a concern for some buyers, while the lack of available mortgage finance continues to keep many prospective purchasers out of the market.
More positively, surveyors’ expectations for sales over the coming months edged up, with 8% more expecting sales to increase rather than decrease, up from 6% in November. Many respondents suggested that the market would begin to pick up again in the Spring.
Despite this slightly more encouraging outlook, lack of supply to the market continues to be an issue. New instructions fell from a net balance of -4 to -14, as potential sellers waited until the New Year before putting their property on the market.
Worryingly for NAEA members, new buyer enquiries fell for the seventh consecutive month. Surveyors continue to report that lending constraints, particularly to first-time buyers, remains the biggest barrier to any strong improvement in the market.
Pessimism still surrounds current house prices, with 39% more surveyors reporting prices fell rather than rose in December, although this is an improvement from -44% during the previous month. Expectations for house prices over the next three months saw 29% more surveyors predicting prices would fall than rise (from -41% more in November).
Moreover, the closely watched sales to stock ratio, a key guide of future price changes, stabilised, moving to 21.5% (from 21.3%), suggesting that after recent declines, house prices may begin to steady over the next few months.

Vendor Be Aware

It used to be the case of caveat emptor ( let the buyer beware) but it now seems to be the case of let the Vendor be aware.

We have recently seen out of area Agents opening with the usual promise, and the unforgivable practice of writing to Vendors with properties on the market offering their services on a joint agency.

Recent adverts in the local Press show 13 properties sold subject to contract and one new instruction . But wait, where are these SSTC properties ? Wolverhampton, Stafford and The West Midlands, hardly in the Telford area !

If you are selling, my advice is to use a local Agent with local knowledge and local staff who are able to advise you on the local market and local trends

David Mann FRICS Senior Valuer Nock Deighton

PROPERTY EXPERTS PREDICT CONTINUED RISE IN RENTALS

A local firm of property specialists is predicting the amount of people looking to rent homes will continue to rise over the coming year.

Telford-based Nock Deighton has seen its number of lettings rise by 21% over the last six months of 2010, mirroring recent figures released by the Association of Residential Letting Agents (ARLA), which revealed the number of tenants on their members’ books had hit record highs by the turn of the year.

Similarly, the latest Residential Lettings Survey from the influential Royal Institute of Chartered Surveyors (RICS) found that more than a third of landlords had reported an increase in tenant demand, while 39% had seen an increase in rental levels.

Dawn Clarke, Director of Nock Deighton, said: “Recent surveys from both the RICS and ARLA back the local trend we’ve been seeing – that more and more people are looking to rent. Interest in lettings rose considerably during the second half of last year, and we’re expecting this trend to continue into 2011.”

Formed in 1831, Nock Deighton is one of the Midlands’ most well-established and respected firms of estate agents, lettings agents, block management agents, chartered surveyors and auctioneers. The company stands at the forefront of the modern property sector by embracing up-to-the-minute technology and industry best practice, and has a firm focus on achieving the very best results through a full range of specialist property-related services and dedicated staff. For further information on Nock Deighton’s Letting and Property Management services, contact Nock Deighton’s Telford office on 01952 292300 or visit http://www.nockdeighton.co.uk/  

Plots needed for self-builders

Estate agents could find themselves dealing far more often with plots of land for one-off houses, after housing minister Grant Shapps said he wanted to see many more self-built homes.
However, just one-quarter of self-builders can currently raise the funding they need to go ahead with their dream house projects, it has emerged. Estate agents are also cynical about the quality of some so-called Grand Design homes when it comes to a re-sale.
Shapps cited lack of finance as one of the barriers to self-build, and said he would work with lenders to ensure self-builders can get the finance they need.
But lenders’ reactions in these cautionary times may not be what the Government envisages.
Many lenders fight shy of self-build where mortgages are typically given in retrospective stages as the building project completes.
Self-build specialist BuildStore chief executive Raymond Connor admitted that only one in four self-build projects can currently get the finance needed.
Because lenders are so nervous of lending on incomplete building projects, and by self-builders’ notoriety for running out of money or taking far longer than they had planned, self-build mortgages also cost a premium.
Currently, around 10,000 properties a year – rather than the inflated 20,000 that is often quoted – are self-built, but Shapps wants to see the number grow.
He said that for far too long, the aspirations of ordinary people to build their own home have been thwarted by barriers and red tape.
He said barriers that stand in people’s way will be torn down – including the planning system, regulatory burdens, and lack of access to land and finance.
A new Community Right to Build will offer communities the chance to give the green light to new developments without the need for specific planning applications. This could be local people working alone to build their own homes, or entire communities coming together.
Shapps said: “Building your own home should not be the preserve of a privileged few. I want to break down the barriers that many aspiring self-builders often come up against.”
Shapps has asked the National Self Build Association to work with the Government on developing an action plan.
Ted Stevens, chairman of the NSBA, said: “We believe there are hundreds of thousands of people in the UK that are keen to build their own, very affordable homes, so anything the Government can do to help make this happen has to be applauded. By encouraging more self-build, people will get the homes they really want, very cost effectively. For example, it’s perfectly possible to build a three-bedroom home for around £150,000.”

WINTER WEATHER WARNING TO LOCAL HOMEOWNERS

Following the recent spell of arctic conditions across the region, a local firm of property specialists is offering advice to homeowners on how they can ensure that their biggest asset is protected from winter-related damage. 

Shropshire-based surveyors Nock Deighton are warning people across the county of the effects that snow and ice can have on their properties, and is recommending that homeowners conduct their own audits once the weather improves to ensure the need for costly repairs is limited in advance of any future harsh weather conditions. 

David Perrin, Director at Nock Deighton, commented: “The severe conditions that we have experienced over the past few weeks can have a significant impact on a property, including causing cracks in external walls, the loss of roof tiles and slates, and the development of damp and mould on internal walls and ceilings due to gaps in windows and doors. 

“It is imperative that properties are well maintained and in a good state of repair at all times, but particularly so during the cold season when all elements need to be protected against the most obvious winter perils.   By being prepared for all eventualities, property owners can save themselves significant amounts of money by avoiding costly repair bills. 

“There are a number of actions that property owners can take to make sure that their homes are protected, and many of these are simple tasks that can be carried out by the householders themselves.  This could include inspecting the roof from ground level to identify any loose or cracked tiles, checking for signs of leaking gutters and rainwater pipes, and fitting sealants around door frames to prevent draughts.  These small steps can have considerable benefits in the short and long term. However, if individuals have any concerns regarding their properties, or require large-scale work undertaking, we would always recommend appointing the services of a qualified chartered surveyor who will be able to advise on all necessary action.”

Formed in 1831, Nock Deighton is one of the Midlands’ most well-established and respected firms of estate agents, lettings agents, chartered surveyors and auctioneers. The company stands at the forefront of the modern property sector by embracing up-to-the-minute technology and industry best practice, and has a firm focus on achieving the very best results through a full range of specialist property-related services and dedicated staff.  For further information on Nock Deighton’s professional services, contact Nock Deighton’s Shrewsbury office on 01743 241251 or visit http://www.nockdeighton.co.uk/.