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Quick Move Blog
Thursday, 30 December 2010
2010 saw a widening of the North-south divide in the housing market, with areas of the Midlands and North, that are dependent on public sector employment, being adversely affected by the fears of job losses, in stark contrast to the resilience of London. Hometrack data shows that asking prices fell in 71% of postcodes. the 29% of postcodes recording a rise in prices, were mostly located in the South East and London.
Detailed figures show that some homes in areas such as Barnsley and Sunderland are selling for less than even the depressed levels of 2009. This is in contrast with areas such as Clapham, Wimbledon, Richmond, Chiswick and Fulham where prices have returned to almost record levels.
A Standard & Poors report shows that 10% of households in the North West are in negative equity. Just 1 on 75 households in the South East are in the same situation.
Lenders' reluctance to provide finance to borrowers without a cushion of equity is likely to increase this difference in the year ahead, with lenders developing an aversion to some Northern addresses with large numbers of public sector works such as Liverpool and Newcastle, or high numbers of manual workers such as Stoke on Trent, or below average wages and a higher incidence of credit-challenged borrowers.
Thursday, 23 December 2010
There has been much speculation recently about what will happen to house prices and the housing market over the next few years. In a difficult economic climate, it is natural that forecasts for the near future will be of great interest, although, unfortunately, many predictions do not bring good news. In his book ‘Boom Bust’ published in 2005, Fred Harrison predicted that house prices would fall by 20% between 2008 and 2013. However, he recently increased the figure to 30%. Jonathan Davis has made a similar assessment, envisaging a 40-50% decrease in house price between 2007 and 2013.
Capital Economics Ltd also believes that house prices will fall, especially through 2012, and has attributed the current market conditions and the bleak predictions to “the deepest public-spending cuts since World War II and tighter credit conditions [which] deter potential buyers”. Naturally, a further lack of buyers would push house prices down and make it increasingly difficult for homeowners to sell. For those who manage to find a potential buyer, there would be a higher risk of chains collapsing and people might lose the option of making the move they desire. It is understandable that, as a result of the uncertainty, lots of people have lost confidence in the market.
Homeowners, wanting to avoid the hassle and time-consuming nature of trying to find a buyer via the open market or who need to sell their house quickly, can call professional property buyers Quick Move Now. As an efficient alternative to conventional methods of selling, Quick Move Now offer cash for properties, in a service which provides the speed and certainty difficult to find elsewhere. A quick house sale offers homeowners peace of mind and the freedom to make the fresh start they have planned.
The Council of Mortgage Lenders (CML) reported 36,000 repossessions in 2010 and predicts that there will be over 40,000 repossessions in 2011. Their Annual Market Forecast for 2011 predicted “a modest increase in arrears and repossessions next year, reflecting the continuing pressure on household finances, the persistence of cases of long-term arrears and the government’s decision to cut help for borrowers by cutting payments of support for mortgage interest”. This report shows that there are many factors controlling house prices and the confidence of buyers, and homeowners are at the mercy of these factors.
CML’s Forecast went on to say that “given the continuing economic uncertainties, there is little to encourage buyers. With funding in short supply, the availability of mortgages for first time buyers will remain limited. Activity in housing and mortgage markets is set to remain broadly flat in 2011 and we do not envisage a return to the lending levels that characterised the middle of the last decade for many years to come”. These worrying predictions are corroborated by an Opinion Poll conducted by the Building Societies Association (BSA) which found that confidence in the housing market is low and a revival does not seem imminent.
Repossessions are set to rise, arrears are also on the up and mortgages can be unobtainable. Predictions for 2011 do not bode well for the housing market. In such difficult market conditions, Quick Move Now gives hope to homeowners looking to sell. Our efficient, professional service provides a firm offer on your property at no cost and with no obligation, and guarantees a cash sale within the timescales required. Avoiding repossession and mortgage arrears is proving to be more and more difficult but Quick Move Now can offer homeowners the fresh start they need without the uncertainty which is characterising the property market at present.
Monday, 20 December 2010
The CBI today has warned that interest rates need to rise sixfold in the next two years to combat the rising inflation. This would push up the monthly cost of an average mortgage by £200.
The CBI predicts rates to rise by 2% by the end of 2012. It argues this will be necessary to combat inflation rising to 3.8% within the first few months of 2011, with rates rising 0.25% per quarter.
Coupled with this economists are forecasting house prices to fall by 10% in 2011.
Mortgage lending fell 5% in November and was down 10% on a year ago.
Gross mortgage lending was £11.1bn in November, the lowest since April, and the lowest November level for a decade.
Friday, 17 December 2010
The average monthly cost of renting a house rose in November to a record £692, according to LSL property index, based on a survey of 18,000 let properties.
This is the 10th monthly rise in a row and is being driven by the lack of mortgage finance for those looking to buy a house or flat.
The average rise does mask regional differences, with London rents rising by 1.8%, but the East Midlands falling by 2.4% and eastern England falling by 3.1%.
LSL don't expect rent to fall in 2011.
The Bank of England has warned that seven million home owners are at risk from rising interest rates in 2011.
With inflation rising, and being consistently above the Bank's official target, many economists are expecting interest rates to rise next year. With two thirds of mortgage holders on variable interest rates, there is a large number of people that could be affected by any rise in rates, with higher monthly payments the result.
Many mortgage holders have chosen to stay on their lender's variable rate with interest rates so low, while others have been forced to as they have struggled to meet lenders' stringent new criteria for mortgage applications.
The report warns that in interest rates rise to 5% and banks maintain their current profit margins, households will spend more of their disposable income on mortgage interest costs that at any other time in the last 20 years. This situation could easily make payments unaffordable for many people and we coud see repossessions rise. Charities have already warned that home owners are falling behind with mortgage payments at 'an alarming rate'.
If you find yourself in this situation and need to sell you house fast, then a quick house sale such as Quick Move Now is your best option. Call us on 0800 036 3366 to discuss how we can help you or visit the quickmovenow.com website for a quick and free house price estimate.
Wednesday, 15 December 2010
Quick Move FTI* over 31%.
Aborted sales continue to increase as market conditions worsen.
There is a lot of uncertainty out there at the moment, no one knows which way the housing market is headed and the threat of redundancy looms for many.
Therefore many buyers are getting cold feet and are pulling out of transactions. More still are so jittery that even a slight issue at survey or problem securing the mortgage they wanted will result in them pulling out of the purchase.
This situation is likely to get worse not better. Prices are expected to fall next year, mortgage lending will be further constrained and general uncertainty in the economy will increase. All this is likely to spell another difficult period for the housing market.
What is the Quick Move FTI?
Not all property sales that are agreed go on to complete and the percentage of sales falling through varies greatly with prevailing market conditions.
When a chain collapses sellers can face a number of issues:
-Large delay in selling as whole marketing/sale process is restarted.
-Lose onward purchase.
-Remain exposed to changing market conditions.
-Lose out financially with costs sunk into solicitors, estate agents, home information packs, survey and mortgage fees often exceeding £2000.
Quick Move agreed over 500 sales last year but like any seller we have trouble with chains and sales falling through. This is despite a dedicated sales progression team and detailed assessment of every buyer, their finances and related chain. The average home seller doesn’t qualify buyers to the same degree, so the general market fall through rate is much higher.
The Quick Move FTI is a 6 month moving average measuring the percentage of agreed sales that fall through.
The index is uniquely placed to give a current indication of how market conditions are affecting general home owners looking to sell their property.
Quickmovenow.com specialises in the rapid cash purchase of residential property. And our professional and competitive service provides clients with a quick, secure and efficient sale.
We assist clients in a range of circumstances but if your specifically want the certainty of selling without the complications of a chain or have been involved in a broken chain and want to secure your onward purchase-Quickmovenow.com could help.
If you want more information please complete a free online estimate or contact us direct on 0800 068 3366.
Tuesday, 14 December 2010
The latest RICs survey reports further difficulty in the housing market.
The November survey shows that more surveyors are reporting price falls rather than rises. Transaction levels also remain depressed with average sales at lowest level since June 2009. At the same time new buyer enquiries continue to fall. Without this new demand to stoke the market, we could well see a very poor start the new year.
Monday, 13 December 2010
Rightmove reports today that the asking prices for houses fell by 3% in November, with national asking prices having now fallen in 5 of the last 6 months.
Rightmove predicts further falls next year with fears of rising unemploymnet, increases in interest rates and the continuing rationing of mortgages.
Mils Shiside of Rightmove forecasts "that new sellers will have to drop their asking prices further in 2011...At best prices will be flat, but a drop by as much as 5% is predicted...". He sees further downward readjustments in certain areas of the country with a large over supply of property, principally in the north.
So clearly, some readjustment and realism is needed when valuing your house and setting your expectations. We often speak with house sellers who have had their house on the market for over 6 months without securing a sale, simply because their price expectations have been set too high.
Sunday, 12 December 2010
Figures from Rightmove show that house sellers slashed their asking prices by nearly £7,000 in December in an effort to attract buyers.
This reduction of 3% in December follows a 3.2% reduction in November, dragging down the average asking price in England and Wales to £222,210, down by 6.5% on June 2010.
Rightmove warns of a fall of 5% in prices in 2011 if lenders clamp down on those mortgage holders who are struggling with their montly mortgage payments, leading to an increase in forced house sales. According to Miles Shipside of Rightmove, "in areas of over-supply and where forced sales are more prevalent, a more extreme readjustment of sellers’ price expectations will be necessary. These are likely to be more concentrated in the north of the country."
Rightmove also warned that transaction levels, half their pre-credit crunch levels, will not recover to normal levels until 2015, as mortgage lending continues to be rationed.
Friday, 10 December 2010
Nationwide has recently warned that house prices will continue to fall in the near future. Graham Beale, Nationwide’s Chief Executive, has said “In the housing market, conditions have weakened noticeably over the last six months, with both a decline in buyer demand and a modest downward trend in house prices”. Homeowners have been finding it more and more difficult to find buyers for their properties which has lead to long periods of time being spent on the market and extra stress and worry when trying to sell. The uncertainty associated with selling property has naturally caused a lack of confidence in the housing market.
Unfortunately, many people feel that this is only the start and selling will get even tougher. Ed Stansfield of Capital Ecomomics Consultancy said that “last year’s revival [in house prices] did not have much foundation” and added that “prices will go back to their previous low and there is plenty of scope for them to fall back below their level of Easter 2009”. As a company, Capital Economics have been predicting a sharp fall in house prices across the board.
In a market where people are finding it more and more difficult to find buyers, the only guarantee of a sale is through professional buyers such as Quick Move Now. Homeowners have found that, rather than waiting on the market, struggling to find a buyer and unable to make the move they would like to make, they can sell to Quick Move Now with ease and certainty. With no mortgage needed and cash funds available, we can purchase property within the timescales required, leaving homeowners free to move forward without hassle and worry.
Friday, 3 December 2010
Homeowners this week face even more bad news as evidence reveals it is increasingly difficult to attain mortgage lending. The BBC’s Personal Finance Correspondent Simon Gompertz has announced that mortgage lending is barely a third of the level of three years ago. He added that even first time buyers who perhaps can afford the monthly mortgage payments are prevented from buying because deposits are so high. Unfortunately, it is not only first time buyers who are struggling to purchase: total mortgage lending for October of this year was the lowest October figure since 2000.
As if this wasn’t bad news enough, the Financial Services Authority (FSA) has warned banks and building societies that stricter assessments of mortgage applicants and their situations may be required in the near future. We are already experiencing the affects of mortgage lending difficulties as The Royal Institute of Chartered Surveyors (RICS) has named a surplus of sellers over buyers as one of the major factors responsible for the difficult market conditions.
Naturally, issues such as these have a direct impact on the housing market. If buyers continue to experience difficulty with mortgage lending, less and less people will be in a position to buy, there will be a further decrease in the value of properties and many homeowners will spend long periods of time on the market trying to sell.
Quick Move Now offers an alternative to selling on the open market. We are cash buyers which means that we can offer the speed which the market cannot and can eliminate the stress and uncertainty associated with selling a property. Many people feel that their future is determined by the unstable conditions of the market and that they have lost control over their options. Our service gives homeowners their control back and enables them to sell within the timescales they require. For more details, call us on 0800 068 3366.
Wednesday, 1 December 2010
The Nationwide has reported that house prices fell by a further 0.3% on November, meaning that prices stand just 0.4% higher than a year ago, with the average house costing £163,398.
This is the 4th fall in 5 months that Nationwide has reported and with prices in the past 3 months being 1.3% lower, there is certainly a downward trend in prices.
Meanwhile, the demand for rental property is rising as people find it increasingly difficult to obtain mortgage funding. this in turn is fuelling a rise in rents.
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