GET OFF YOUR SOAP BOX!

Property asking prices have certainly ‘jumped’ in the last few months. The apparent demand or should I say the actual lack of supply has meant Vendors and Estate Agents seem to be upping the ante in terms of asking prices. But what for 2010? Personally, I still can not get my head around some of the ‘values’ being put on property. There seems to be a world of delusion out there.

The following ‘experts’ have given their predictions for 2010 to the FT.

Stuart Law, chief executive of Assetz: +5 per cent

Ray Boulger, senior technical manager, John Charcol: +4 per cent

David Bexon, managing director, SmartNewHomes.com: +2 to +3 per cent

Nigel Lewis, findaproperty.com: +1 per cent

Jonathan Haward, chairman of County Homesearch: +1 per cent

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Launched in July last year the Rent To HomeBuy scheme is designed to help home buyers such as first time buyers and key workers get on the property ladder. Considering property prices are lower than a year or two ago you would think people would be queuing up. Of those who have signed up nobody has purchased a home. The scheme is open to any household with incomes below £60,000. Even existing homeowners who can no longer afford to move can take advantage.

Under the scheme, you can rent a new-build home for up to five years, initially paying 80 per cent or less of the market rent. The difference is paid by the Government and this subsidy makes up the bulk of the scheme’s costs. Then, at any point during those five years, the participants can buy a minimum of 25 per cent of the home, having saved up the deposit while paying the low rent.

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Rightmove has reported that the asking prices for properties in the UK fell 1.6% in the four weeks up to November 7th 2009. That’s an average of £3,744 per property being marketed.

Miles Shipside, commercial director of Rightmove, said: ”In all but the most buoyant of markets, home moving comes second to Christmas festivities. ”While the market has recovered from some dreadful lows, this month’s price fall proves that it does not yet have the strength to buck seasonal trends.” ”We therefore expect three months of asking price falls before a tentative recovery in early spring, likely followed by pre-election jitters.”

Just over 89,000 properties were put on the market during the period, similar to levels recorded a year earlier, but still 30% below the volume in 2007.

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House prices will drop in 2010! The price increases in 2009 have surprised economist and pundits.  Most believe they will not last.  In a report published by the Ernst & Young ITEM Club in September 2009, economists warn that the “rise in house prices seen in recent months is a false dawn and prices are likely to fall again in the first half of 2010.”

They argued that the “the recent stabilization in prices largely reflects an acute shortage of available properties… A small number of cash-rich buyers have supported prices, but the supply of these funds is limited so prices are likely to dip again in the first half of next year. A lasting recovery in house prices would only be possible if there is a sustained pickup in demand.”

The gloomy scenario is affirmed by other housing market players:

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Goodbye Sub-Prime, Hello Debt & Taxes!

Well, was that it? The deepest recession in decades. The economic hurricane was nothing more than strong gusts and showers. Oh well, nothing to worry about then. In fact, this country has recovered so much property prices are on the up, 1.2% in October, people are back in the shops spending again. New car sales of 168,942 in October alone! Yippee!

Of course the Government would never stifle positive news. They want the momentum to continue until time runs out and they have to call an election. The opposition parties don’t want to sound negative. Even Vince ‘the Prophet’ Cable, who, give him is dues, has talked a fair bit of sense over the last two years seems very quiet.

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