Download Kate's latest Property Price Report
It’s amazing to me that so many people ‘cry wolf’ over property prices. One minute we are being told the housing market is in such a poor state in needs government intervention to boost activity, the next someone who clearly hasn’t even bothered to look at the Land Registry property price figures turns round and says we are heading for a housing bubble.
If I was someone new to buying, selling or investing I would be thoroughly confused by now!
| To some extent, there is reason to be confused. Average property price data is being quoted all over the place and unfortunately companies, consultancies and organisations know if they put out a scary title such as ‘there might be a housing bubble’ it’s picked up by the media. Indeed these predictions have had such huge media attention that people are now so in fear of house prices rising beyond their reach, they are offering higher prices to secure the property. Spot the mistake? Yep, talk about housing bubbles and you’ll cause one! | XXX |  |
Meanwhile for sellers in Northern Ireland, Wales, the North East and West, Yorkshire and the Humber and East Midlands, it’s still taking 9-12 weeks to sell a property, over 12 viewings before an offer is received and when buyers do make an offer it’s still 8-10% below the price the seller has asked for. In these areas too, the Land Registry data shows a third of our English regions and Wales are still experiencing price falls (on average). Indeed Liverpool averages are 27% lower than they were in 2007. Bradford is 24% lower as is Manchester and Leeds, Nottingham and Sheffield.
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XXX | This doesn’t mean there isn’t good news. In all areas the time to sell, the offer to asking price and the number of viewings required to sell a home are all showing signs of improvement. The problem is this doesn’t mean that house prices will automatically go up. This is still limited to parts of Central London and areas such as Brighton and Hove. |
Housing bubbles are just that – they are small pockets of areas where prices are going up rapidly, but it’s mostly in areas such as Kensington and Chelsea or Islington spilling over into Hackney. Areas such as Barking and Dagenham, Newham and Croydon are all still in the doldrums compared to 2007 prices.
What does this mean for buyers, sellers and investors? It basically means yes, now is a good time to look at what you could sell your property for and what you could buy. But you have to check out the individual market for your area and your property type. Talk to local agents and find out how quickly properties are selling and how many viewings you’ll need.
Most of all – don’t rush. Most people who did from 2002 are still regretting it now as many remain with no or little equity in their home. Renting is still a great option, especially in areas where prices aren’t rising.
So don’t panic! Take your time. Buying and selling a home is a huge task, don’t let anyone bully or frighten you into it.
Download Kate's latest Property Price Report
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