To buy or not to buy, that is the question?
By Ian Harris of Watsons in Norwich
Prices fell at the end of 2010 and there is now an excellent stock of well priced property available. Anyone requiring a
mortgage, investors or owner-occupiers, should consider a move now. Following the over-lending of the 2004-2007 period, the Financial Services Authority (FSA) are conducting a mortgage market review, considering what lending restrictions it might introduce to prevent dangerous lending bubbles occurring in the future. From recent press releases, The Council of Mortgage Lenders (CML) seem worried that the FSA are taking an excessively risk-averse approach and people may want to buy before any additional restrictions take effect. Despite this, the CML are not predicting any significant falls in the numbers of property transactions in 2011. I am inclined to agree with the NAEA analysis of the coming year: “We do
not believe that there will a widespread fall in house prices over the next 12 months. There will be ups and downs, but I’m confident that we won’t see a plunge.”
Ian is on 01603 619916.