December 2009

The property market is slowing as is habitual at this time of year although there are many home owners “getting their ducks in a row” by asking agents for valuations with the aim of marketing their properties in the spring, although whether there will be a flood remains to be seen.

Much of the activity in the market is due to properties changing hands between estate agents, rather than through sales and purchases, although there has been a flurry of transactions at the lower and middle level where large deposits were available.

Until particulars of sale are produced there is no legal requirement for a HIP to be created as technically the property is not being marketed. This means that there are a growing number of properties that are “for sale” which are not on the open market and of which the general public are unaware. Using a buying agent has the advantage of gaining access to these properties early on and stealing march on unrepresented parties who must wait until the official launch several months hence, unless the vendor has already achieved a sale.

Whilst in general property prices may have stabilised across the UK, recent evidence has shown that the East Midlands has performed very poorly in comparison, with prices 1.6% below those of November 2008 and no sign of an imminent recovery. Couple this with the fact that prices are being propped up by a lack of stock means that the true underlying value is much lower and an adjustment is inevitable. Vendors need to be realistic regarding their asking prices and be willing to consider offers below their expectations.

The “grey market” is expanding with more owners choosing to sell quietly and until the result of the election is known next year uncertainty will remain the norm.