Southend property market up date April 2010

The general election and the housing market
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.

What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK

House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”

Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.

For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.