Reasons to be cheerful for property owners
Reasons to be cheerful include a scarcity of supply and positive
sentiment from buyers about the relative value of property, which
has been enhanced by low interest rates and the scarcity of good
property for sale.
Strutt and Parker predicts that some momentum will fall away in
the run-up to the election and is advising those wishing to sell
quickly and move on with their lives to bring their properties to
the market without delay.
Michael Fiddes, head of national sales, said: "While the general
election is likely to cause some nervousness in the marketplace and
inevitably austere fiscal measures will be imposed by any incoming
government, this more often than not is outweighed by the
post-election hype of a new government.
"The question is how will this hiatus affect the market? I
believe that the market will take all this in its stride and will
take time to readjust to the changing economic conditions, but
should in the main keep on an even keel, with forward
momentum."
"Along with prime London homes Strutts predict the prime country
house market would remain immune to any gloom and continue to rise
by as much as five per cent, bringing prices closer to 2007
levels.
"In addition to this, family homes near centres of employment
will continue to perform. Buy-to-let investors will be back in
force this year.
"Although mortgages still remain difficult to obtain, yields are
attractive for anyone with cash to invest, especially when compared
to alternative investments."
The year 2009 was a year of welcome surprises, following the
collapse of Lehman Brothers. There were reports of apocalyptic
scenarios for the housing market in 2009 but the reality was that
the market improved in the spring, and by summer was trading at
peak 2007 levels in some areas, leaving the doom-mongers somewhat
disappointed.
Philip James, of their Sevenoaks office added: "At the higher
end of the country house market and prime central London, modest
tax rises and public spending cuts are unlikely to affect those
buyers that have capital invested in their homes and linked to the
stock market which although still volatile is not unduly
unhealthy.
"For this sector of the market life goes on, children grow up
and people downsize, families need bigger houses, people move to be
closer to schools, people retire etc," added James.
"Demand will therefore still very much be there."
Friday, January 29 2010