Promising signs for housing market
There are clear indications of a more buoyant housing market, with Blundells' latest figures showing a 15 per cent increase in sales in the first quarter of this year compared to the same period in 2009.
Further positive signs include a 60 per cent rise in completions and a 25 per cent increase in new instructions.
But as Blundells director, Ian Appleyard, explains, although the rises are encouraging, he is urging caution.
Says Ian: “Although there have been year on year increases, the market is still price sensitive and affordability still remains a problem, with second time buyers having little or no equity to move and especially first time buyers who are having to find at least a 10 per cent deposit to get on the ladder.
“There is an influx of new properties coming to the market and clients' expectations are reasonably high. Some estate agents are listing properties at an inflated price to get their board up but this will lead to supply outstripping demand, whereas as in 2009 there was a healthy balance.
“There is a shortage in rental properties across the city and it would seem that these properties are now coming to the sales market and this could potentially drive house prices downwards.
“The forthcoming election will obviously have an impact, as will the World Cup when the nation usually comes to a standstill!”
In another interesting development for the housing market, the recent budget by Chancellor Alistair Darling included the announcement that stamp duty would be cut for first time buyers on properties under £250,000.
