It won’t be news to you that the property market this year has been somewhat turbulent. How the majority of the public have made sense of it is beyond me!
MP Grant Shapps said the other week that it was time for a ’housing revolution’ and a bit of boredom in the property sector. I for one am more than happy for this to happen – a few extra yawns whilst reading the property headlines would be a welcome change from gasps of shock and bewilderment.
However, no matter whether stability is restored in this Government and headlines become, well, less like headlines, we still have to deal with now. So this leads me to my real motivation in writing this blog – there are a few key issues in the market which, however portrayed in the media, need a bit more of a balanced overview:
- Firstly – to buy or not to buy? This simply is not the question. Regardless of a buy to let boom and a labelling of the current generation of potential homebuyers as ‘generation rent,’ the question really is can you afford not to buy? Not everyone can afford to buy right away and saving takes time, I admit, but I wouldn’t hold your breath for the rent vs. price index to change in the foreseeable future either.
- This brings me nicely to point number 2. The great ‘mortgage famine.’ A far too popular headline at the moment! Yes, there needs to be more mortgage availability but it may not be quite as bad as you think. The Council of Mortgage Lenders released statistics after the summer showing an increase in purchase lending. Transaction levels may be through the floor but they don’t need to be. Miller Homes offer a range of purchase incentives that can help finance your move. Whether it’s an equity loan or if you want to keep it in the family, there’s an incentive that can help you. As impatience creeps in to the market, sellers become more realistic and if there are more mortgages available, this ‘famine,’ might just begin to turn around as we enter 2012.
- My final point, because all is intertwined in this industry, is house prices. You can track house prices on the Guardian website, and yes, there are peaks and troughs. To bring about genuine stability in the market there are a couple of factors to consider – the government and the lenders. I’m not going to blame media influence like many in this industry do. The government need to deliver on their planning proposals and the lenders need to open their doors. Watch this space.
All in all, despite low sentiment, things can and will get better with time. There’s a case of supply and demand out there and a responsibility to house our nation. Here’s to hoping that come spring next year we’re still on the right road to recovery – and much further along it.
By Chris Endsor, Operations Director
