Musings of a London Buyers Agent

After  a year or so of mortgages being pulled from the market, the Nationwide has brought back the 125% mortgage for buyers who are trapped by negative equity.  This group of buyers would be unable to move without the new mortgage but it strikes us that this is the least likely group of home buyers who should be entitled to such significant borrowings.  After all, they hardly have a good track record if they are already in negative equity.

However lately we’ve been thinking that the real losers are canny cautious buyers who settle for properties in need of a little work or repossessions or distressed sales, available at a bargain price.   We have represented both first-time-buyers and new investment buyers who haven ‘t got much of a deposit but who would really have benefitted from the 125% mortgage and would also be relatively low-risk buyers. 

The Clients I am thinking of have bought good value property at excellent prices and in some cases below the true market value and need additional funds for renovations, or a lease extension, both of which would add immediate value and saleability. 

However following the boom years, most mortgage companies nolonger have any appetite for this type of lending.  Clearly, some people borrowed more than they could ever repay.  Also agents and mortgage brokers flipped property and finance deals, so that in reality the owners put down very little or no cash other than a brokers fee.  In cases where the valuations were too high, the mortgagors were left high and dry when the housing market crashed. 

The thing is, why on earth does it make sense to lend 125% with a track record of getting into negative equity?  There is no way a commercial lender would do this.  Although not a Conservative by nature, my parents words of wisdom are ringing in my ears – is it time to return to a tory spending regime?  If this new scheme from Nationwide is anything to go by – I rather think so.

PS If you need a Buyers Agent who will give you an honest valuation and justify it and tell you if the market is overheated (as it is now in many parts of London), you know our number!

Technorati Tags: 125% mortgage, Buyers agents, First time buyers, homebuyers, housing market crash, London Buyer's Agent, overheated market

Tags: 125% mortgage, Buyers agents, First time buyers, homebuyers, housing market crash, London Buyer's Agent, overheated market

News from the front delivered by a London Buyers Agent

The NAEA (National Association of Estate Agents) has announced that demand is outstripping supply across the UK housing market, with estate agents registering four home buyers to every available property for sale.

The monthly market survey of the National Association of Estate Agents found that the average branch had 299 home buyers on its books in May €“ up from 265 the previous month and 247 in May 2008. The average branch had 69 properties on its books. For the second month running estate agents also reported a successful selling period, with the average branch selling 10 properties a month – a 30% increase year on year.

Commenting, Gary Smith, President of the NAEA, said: €œThis is really good news for the housing market and the UK economy in general.

€œNAEA members are showing that there are buyers a-plenty out there. More often than not these are also potential sellers who are at the beginning of the process €“ so there is bound to be a lag which creates a shortage of properties in the short term.

€œWith mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession.”

Confident words indeed but no Buyers Agent based in London can deny feeling the slight bounce.  I never thought I’d say this but thank goodness for the HIP!  It’s keeping vendors away, limiting supply and fueling demand for great property not on the market. And since we buy so much property off-market, that’s just one area we can add value!

Technorati Tags: home buyers, London Buyer's Agent, market forces, NAEA, off-market property

Tags: home buyers, London Buyer's Agent, market forces, NAEA, off-market property

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