Some agents are reporting a slowing down of activity this month compared with previous months. Even if many people have reduced their holiday plans this year due to the current economic climate, it still provides an opportunity to quality spend time with family and friends.
So far this year we have seen an improvement in the property market. The Council of Mortgage lenders announced this month that mortgage lending reached £12.3bn in June up from £10.5bn a month earlier. They are currently forecasting a figure of 15bn for gross mortgage lending for this year. However this is still dramatically lower than the mortgage lending at the onset of the banking crisis in the autumn of 2007.
Furthermore the mortgage market has shrunk in terms of the number of lenders providing loans and the actual number of loans on offer.
With regard to prices we have at Sapey & Co seen a modest increase in the price of some properties this year particularly at the lower end of the market. This increase is endorsed by the RICS monthly survey for June which “suggested there was some short term optimism – with more surveyors expecting property prices to rise than fall for the first time since May 2007”. Furthermore low housing availability and increasing interest from potential buyers have increased this optimism within the housing market.
Whilst at Sapey & Co we have not seen any significant downturn in activity so far we do expect to see a seasonal adjustment in late July and August reflecting the fact that more people are focused on holiday activities rather than buying or selling property. However we are confident that September through to November will see increased activity in the housing market, certainly within this area which has not been as badly affected by the state of the economy as some parts of the UK.
We therefore expect the market to continue for the rest of the year in much the same way as the first six months.
Chris Sapey’s on 01603 616666.