News

Another week passes with no great surprises, Greece voted the way we anticipated, the European Central Bank started QE as anticipated, only 4 years late, but Brussel’s never did like to rush. The markets Worldwide have been clouded with the uncertainty, but let’ s not get too excited, the total Greek economy, is smaller than the profits of Apple!, good to keep things in perspective I always think. In the short term all markets including property will feel insecure, but common sense will prevail. Greece has always been about politics, never economics, in monetary terms it really is irrelevant.
Europe and the union is always news, but company’s trade with companies, not Countries with Countries, so if Greece is in or out, indeed if we are in or out, matters very little we will still get our olives. Europe was always a political project it has never been an economic necessity.
As regards the UK property market, it started the year well, with viewing’s up considerably, sales up at both ends of the market, still a bit sticky in the middle range. I think that highlights two points, the high end have always got the money to buy no matter what the economics are and the first time buyers are getting a foot on the ladder because prices have fallen and lenders are starting to waken up, along with renewed interest from the Buy to Let market. The middle range is a mixed bag, some sellers are not willing to face the reality that prices have fallen or are in no particular hurray to sell and quite happy to wait until the market comes back up to where it was. This leaves the overall market with a problem. Stock. All agents UK wide are reporting a lack of stock, normally that would force prices up, which has happened at the bottom end with Buy to Let investors making use of the lack of mortgage regulation to buy what the first time buyer cant and rent it to them. The higher end rarely needs a mortgage or the loan to value is so low the lenders are quite happy.
To have a truly functioning market, movement at both ends with nothing moving in the middle, will eventually run out. We need to find movement in the mid-range properties. Stamp duty changes in England has addressed this, but the second change in Scotland has not, indeed it has made matters worse. So only time will tell where this leads, either we grind to a halt as happened last year after the initial spring flurry, or something will have to give. One thing sure to add interest to the property market is the new pension’s legislation to be introduced in April. This will allow those with private pensions to take the whole fund out (tax and regs apply) (happy to discuss separately with those interested) and do something else with it. Surveys show that 23% are looking at property to re-invest. Clearly the Buy to Let market will get a boost in April, but life will become more difficult for the first time buyer again. Not that a seller cares who they sell to!  New buyers are always welcome to the property market.