The Housing Market: One Good, One Bad....

Bad: Property sales between December and February were at their lowest in the last 31 years.

Good: We have had four consecutive months of rising enquiries from new buyers.

Bad: The National Housing Federation predicts 50% less new homes built in the next year

Good: Prompted by sharp cuts in interest rates buying is becoming more affordable

Bad: Buyers are still in difficulties with lenders demanding high deposits

Good: Family homes remain in high demand

Bad: Difficulties in obtaining mortgages even at the current low interest rates and with a full deposit

Good: Property prices are down

Although things have definitely improved during February nobody involved with the housing market is yet out of the woods. It is time the government stepped in and put funds into new social homes which would assist not only those looking to buy a house but also house builders who are very busy “mothballing” many of their developments.

The government got it wrong when they fiddled about with lowering the VAT rate – now is the time to make a very serious dent in stamp duty, let’s say 0% up to £250,000.00 and 1% between this and £500,000.00. That should help get the market moving again!