Esher Estate Agents - The Markets

And now for the good news……

With buyers steadily registering over the Spring and the best portfolio of property stocks on our books for several years, we have seen a significant increase in activity in the market. Whilst the press coverage continues to dampen hopes of an early market recovery, further analysis from the Land Registry, the most accurate measure for pricing, says that house prices are up 3.6% over twelve months and proving to be remarkably resilient in the face of subdued sentiment and restrictions in the mortgage market. Meanwhile, Nationwide and Halifax have announced price falls year on year of about 1% or, in other words, prices are back to where they were this time last year. This does not, of course, take in to account the wide regional variations in England and Wales, not to mention the resilient prices in Greater London which remain up 10% year on year. Meanwhile, good houses correctly priced continue to sell and rent.

It is now clear that competitive pricing is key to selling houses in this market but, with many buyers seemingly unable to bring themselves to commit in the current climate, we expect continuing pressure on prices in the short terms. However, the gloomy predictions of mass doom have yet to prove to be accurate with the UK economy having grown 0.4 % in the first three months of the year, as expected, but down from 0.6% in the last three months of 2007. The annual growth rate slipped 2.5% against a previous rate of 2.8%.

The Bank of England has cut interest rates three times since December and the latest data suggests that the Bank will act to cut rates again soon. This, combined with the £50 billion cash injection from the Bank of England, will almost certainly have a positive impact on the housing market, but the banks will have to pass the rate cuts on before we see price rises any time soon. London remains relatively strong, however, and notably this is where the majority of our enquiries are originating.