Property price analysis from a Property Finder

Nationwide have published their house price data which measures agreed sales figures at the point of mortgage approval and without taking into account the seasonal adjustments Nationwide’s economists make, agreed prices for the UK are up for the second month in a row.  This brings faltering house prices to par with figures from December08/January 09 at an average of £151,861.  If only, I hear those London-based first time buyers cry!

Interestingly, Nationwide would clearly anticipate higher volumes/price increases for this time of year as they have marked the figures down on the seasonally adjusted price index, which in a healthy market, compensates for the seasonal peaks and trough Property Finders and other property professionals like us have come to know and love.

So does this mean pricing has reached rock bottom in the UK?  We don’t think so.  We still think Scotland is over-priced, although we are seeing value in country estates.  London pricing particularly in prime areas has fallen swiftly in recent months, but we feel that overall London property prices are still not sustainable so we expect prices to continue to fall slightly for the rest of this year.  Ditto most of the Home Counties.

Looking at the first time buyers price: earnings ratio produced by Nationwide, only the North, Scotland, Wales and the East Midlands look sustainable, but most areas are still higher than the 3 or 4 times average earnings one would expect in a healthy market.  London and the South East are now at a more realistic 5.4 times and 4.3 times respectively which brings affordability back to levels last seen in 2003 for London and 2002 in the South East which should give further comfort to buyers new to the property market.

And the view of a UK Property Finder to all this?  We like a flat market.  It’s competitive but it separates the men, or should I say, women from the boys.  We didn’t buy much in 2007 because we felt the London market was very over-priced.  We’ve not been slow to advise Clients to walk away when vendors won’t accept reasonable offers, so for us, it’s a good thing.  This UK Property Finder thinks there is never a wrong time to buy, as long as you pay the right price.

Technorati Tags: House Prices, Nationwide House Price Index, UK Property Finders

Tags: House Prices, Nationwide House Price Index, UK Property Finders

Rantings of a disgruntled London Property Finder

Today we spent the day out of the office at the IOD annual convention, in the Royal Albert hall.  Politicians never confirm until late in the day so Alistair Darling late entry as the first speaker was an interesting start to the day.

Given the audience, the Chancellor’s principle objectives were to defend the need for additional taxation particularly the new 50% tax  and also shouting about all the concessions and help the government is giving to smes.

Justifying the need for additional taxation, our hearts bled to hear Alistair Darling bemoaning the enormous hole in govenment revenue since the beginning of the recession due to amongst other things, the fall in stamp duties collected.Rather an interesting point to make to a hall full of business people, given that during these difficult times we need to make pragmatic decisions every day. For example, whether it is better to have a proportion of a little or all of nothing.

The Chancellor has missed a trick with stamp duty. Reducing the rate of stamp duty payable on properties below 500K would have helped boost transaction numbers which could in turn have boosted the revenues the government gains from property and boosted confidence in the property sector and the economy as a whole.  First-time buyers who we work with, tend to buy properties worth £400,000 and above.  Assuming they don’t spend over half a million, that means stumping up 3% stamp duty or using one of the avoidance schemes.  For the many who don’t have helpful accountants or London Property Finders like me, that means finding an additional £13,500 for a flat purchased for £450,000 - the price of a good 2 bed flat in a great area in London.  Typically we will charge just short of £7,000 for finding the fabulous flat - but then we would have introduced the buyer to property they would never have found on their own and negotiated a great deal which won’t fall through.  What does the Chancellor do?

Temporarily cutting stamp duty by half for property below £500K would make a real impact on the London property market and the Chancellor would gain a little of alot rather than a great deal of very little!This London Property Finder thinks it would have been a welcome if pragmatic course of action

Technorati Tags: First time buyers, London Property Finder, London property market, london property market news, Stamp Duty

Tags: First time buyers, London Property Finder, London property market, london property market news, Stamp Duty

Musings of a London Buyers Agent

It will come as no surprise for those of us with friends, colleagues and Clients in Dubai: it seems the bubble has finally burst.  According to data released by commercial agents Colliers Cre, property prices have slumped 41% for the first three months of 2009.  The index, which is compiled using mortgage transaction data from lenders who make up 60% of property lending in Dubai, clarifies the drop, indicating that the year on year decline is just under a third, at 31%. 

According to the report, given increases in property values last year, this takes property prices in Dubai to parity with pricing in December 2007.  Assuming these figures are correct, the Arab state is still out-performing the London market, where on average prices have dropped to levels last seen in 2006.  Given that the Dubai property market is busiest during the Winter months, we would expect values to continue to decline for the rest of this year. 

Colliers report that investors have taken over once more as the prime movers in Dubai property, as end-users hold back amid redundancy fears.  The most savvy investors will bide their time in the hope of jumping in when the market bottoms out and the figures released today and inevitable slow sales for the next two quarters is likely to hit confidence.  As other currencies fall, international bargain hunters may feel their pennies are best invested elsewhere. This London Buyer’s Agent gives expert guidance at all levels of the market.

For those interested in investing in London, I know a brilliant London Buyer’s Agent, who would be delighted to help!

Technorati Tags: 's Agent, Dubai house prices, Dubai property, House Prices, London Buyer's Agent, London Buyers, Plummeting House Prices, plummeting property prices

Tags: 's Agent, Dubai house prices, Dubai property, House Prices, London Buyer's Agent, London Buyers, Plummeting House Prices, plummeting property prices