February 2010

A shortage of stock is still the biggest issue affecting the property market, leaving many prospective buyers frustrated and values artificially high.  However, the “grey market” (properties for sale but not on the open market) seems to be growing as vendors want to keep their personal business private and only want serious buyers knowing their houses are for sale.  This tends to be properties in the £1m plus range.

There is still considerable uncertainty over the economy and the increasing probability of a “double dip” once the general election is over.  Inflation is also rising and this will impact on mortgage holders who have benefitted from cheap affordable rates, if interest rates start increasing.

Property values are likely to remain relatively static for 2010 as any increase in stock levels will be countered by the easing of mortgage restrictions bringing more buyers into the market.  Asking prices also have to be realistic as buyers are increasingly more discerning and unwilling to pay any more than what they feel the property is actually worth.  Any sustained growth is likely to be a little way off yet.