Nic Cicutti, Friday July 25, 2008
Anyone trying to make sense of today’s housing market is being bombarded with a mass of information, almost all of it purporting to show that prices are collapsing across the UK. Is this really the case? Or are there other stories that are not being told? We tell you where to find out.
Barely a day passes without more evidence that the property market is in decline.
Just this week, the British Bankers' Association (BBA) said its members had approved just 21,118 home loans for new purchases in June, down from 27,499 in May and 66.9% fewer than figures 12 months ago.
This is the lowest figure since the BBA started collecting the data 11 years ago and follows several months of falling property prices and changes in the mortgage market.
The BBA figures show the value of mortgage approvals for purchases was also down over the month, falling by 23% to £3.3 billion, a figure well below the six-month average of £5.9 billion.
It is now commonly accepted that prices are in steep decline. But the key question for both buyers and sellers is that of whether this picture applies uniformly across the UK.
Find the perfect mortgage for your needs
After all, if you are serious about buying, you want to get the best possible deal for your money. But there is no point in making a ridiculously low bid for a property you really want only to then be amazed when it’s turned down – or is sold to someone else.
Interestingly, there is anecdotal evidence that a few buyers are finding not just that their offers are being rejected but that some sellers are managing to get several bidders interested in their properties, with occasional elements of gazumping still present. Calibrating what you offer is crucial, therefore.
Equally for sellers, understanding what’s happening in your market is crucial if you want to get rid of your home and move somewhere else – while not falling for the old line that “everyone” knows prices are dropping.
So where can you get the information you need? There are two things you need to bear in mind: the first is there are significant regional variations. The second is that any drop in price depends on what kind of property we are talking about.
