1
Mar
What's the latest?
Take a look at the statistics and it's boom time in the property
market. Nationwide says prices are rising at 8.6% per year and we
may hit double-digit inflation in February.
But property information specialist Hometrack says prices are
actually only rising in 7% of postcodes.
Meanwhile, the Royal Institution of Chartered Surveyors said the
number of new buyer enquiries fell for the first time in 14 months
in January. It blamed this on the cold snap, but interestingly the
gap in the change in supply and demand slammed shut.
In January, 20% more agents reported a fall in new buyer enquiries
than a rise, while 5% more members reported a fall in new
instructions than rise.
But does the argument that demand is outstripping supply withstand
scrutiny anyway? There is a clear difference in the quality of
activity for each measurement, with the former measured by
interested buyers and the latter measured by people actually
putting their home on the market.
Having said that, there are signs that the mortgage market is
easing. Rates for those with a 25% deposit look good, this could
deliver another slice of buyers for whom property looks affordable.
However, if you can raise less than a 25% deposit rates are still
expensive.