|
WILTSHIRE LIFE - OCTOBER 2002
 Just
what is the market doing? And who do you believe? Asks Michael
Chandler...
I
wonder if you are getting confused about what is happening
with the market. I think that the market is slowing down
and this is generally confirmed by the agents with whom
I talk. According to Hamptons, in June 2002 the market appeared
to be coming off the boil compared to the same month last
year. Their data suggests that this may be more than simply
a seasonal downturn. They point to an 18 per cent decline
in applicants and a similar 18 per cent decrease in viewings.
It
is said that what happens in London comes to the country
a few months later. Prices in London may have stabilised,
say Hamptons, as buyers have a greater choice. Their 14
London branches report a 30 per cent fall in applicants,
but took on 20 per cent more properties, narrowing the supply/demand
ratio that has adversely affected the market in the capital.
They feel that this has to be good news for buyers, who
can expect to see more realistic asking prices. Vendors
should review these trends or they may well miss the boat.
A
major worry in my mind is the inability of the first time
buyer to keep up with the prices, which could eventually
lead to pulling the whole market down. The low interest
rates have helped them to compete with the buy to let people.
There are signs that this side of the market is slowing
down, but with people wanting to live away from home at
an earlier age these days, I hope that there will not be
any unpleasant repercussions as in 1988. I cannot see it
drying up completely but gradually slowing down.
A
government committee has suggested amending the stamp duty
for property transactions. One idea was to reduce the percentage
on buying and charge on selling property as well. A reason
for this might be to discourage us from living in the same
house for too long - the longer you stay the higher the
rate you would have to pay when you come to sell. The fact
that you have worked somewhere all your life, possibly employed
local people and contributed to the community, seems to
count for nothing. I can see people just staying in properties
which have long been too big for them, instead of making
the family home available for a new family with children.
Written by Michael Chandler FRICS.
|
