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Gordon & Rumsby: Update On The Property Market

February 17, 2012

Gordon & Rumsby Estate Agents In Dorset, Devon & Somerset.

Update On The Property Market

We are not out of the woods yet! But there could be a glimmer of light!

The ever-present uncertainty in the European economy is still having an effect on the property market. Many people are opting to stay put, or add space to their existing homes. Buyers are still finding it hard to raise deposits and qualify for mortgages. If you have to sell, it is more important than ever before to present you home in the best possible light, and crucial to get the price right from the outset.

Prices are being reduced.

  • Latest statistics from Zoopla show that vendors in the UK are still having to slash their prices.
  • More than 36% of properties now on the market have been reduced from their original marketing price.
  • The average reduction is approximately 7.5% or just shy of £20,000, as opposed to 7% last year. Glasgow, Blackpool, and oddly, Maidstone appear to the greatest price reducers.

Decrease in the number mortgages for home buyers.

According to the Council of Mortgage Lenders:

  •  2011 saw a 6% decrease in the total number of mortgages lent to purchasers, compared to 2010.

An increase in overall lending (re-mortgages and purchase mortgages combined).

  • A very welcome increase in the number of re-mortgages.
  • Combined, it meant an increase in total lending for the first time since 2007.

Increase in first-time buyer activity.

  • There was an increase in first time buyer activity in December 2011 compared to November 2011.
  • The number of loans made increased by 7% from the previous month.
  • The current stamp duty exemption for first-time buyers (which ends in March this year) may have been a contributing factor, as the number of homes bought in the exempt price band increased by 3%.
  •  See our Stamp Duty Blog for the details on the scheme.

Thinking of selling your home this year? Contact Gordon & Rumsby via the website, or call us for a chat on 01460 30888. We will be happy to visit your property and give you a FREE market appraisal and our honest advice.

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