September, the start of the academic year and also the time when the study of the housing market starts afresh: idle summer surfing of property websites turns to serious contemplation of the opportunities available. Or not available, depending on how the banks are minded to treat loan applications this autumn. Read Bricks and Mortar’s revision notes on the state of the market now.
Buyers Anyone thinking of selling their home should be aware that today’s buyers are fearsomely well-informed about conditions in their local markets. This was one of the key findings from the agents that we quizzed this week on their outlook for the autumn. This new breed of buyer will have nothing to do with a seller who believes his home has been unaffected by the downturn. Proof of this can be seen in research carried out for Bricks and Mortar by the National Association of Estate Agents, which shows that in nine out of ten cases overpricing is the reason why a property will not sell. A badly-carried out DIY conversion is another thing the new buyers will not tolerate. They also dislike kitchens with too personal a decor. If you cannot trust yourself not to install a kitchen that expresses every facet of your personality, this is not the time to put your house on the market.
Loans Mortgage price war. Now there’s a phrase you probably thought never to hear again, given the banks’ stingy stance on lending since the beginning of the year. HSBC’s new 1.99 per cent offer was described by some as a declaration that there would be more competition in the home loans business. It should be seen rather as a statement about the kind of low-risk customer the banks are ever more eager to attract. To qualify for the HSBC deal, you need a deposit of 40 per cent. Only the borrowing elite need apply.
New-builds A city-centre apartment block is at the centre of controversy. But the row is not over the number of unsold units in the building, but its design. Some critics call One Park West in Liverpool a carbuncle; other consider it a tour de force. This spat is proof that attention is turning away from problems posed by the glut of new-build flats. In the panicky mood of autumn 2008, a debate over the aesthetics of developments would have seemed trivial. Half of the homes in One Park West have been sold, as we report on pages 8-9, some to investors, and some to retirees, swapping suburbia for high-rise urban living. The desire for an easy upkeep home is also a growing trend in the country house market, where mock-period mansions are no longer the object of such disdain. Authentically old manor houses tend to have kitchens for staff; the old-looking houses have kitchens that can be used as family rooms.
Tax For the homebuyers and buy-to-let investors acquiring new-build flats in Liverpool and other cities at discounted prices, the stamp duty holiday on properties between £125,000 and £175,000 is a bonus. The exemption ends on December 31. If the Chancellor believes that the continued recovery of the housing market is key to a wider revival, he should extend the stamp duty tax break in his Autumn Statement. But he needs every penny in revenue. Besides he would face embarrassing accusations that the incentive had benefited few first-time buyers.
London The price surveys indicate that London and the South East are leading the recovery; Hometrack data shows single-digit annual declines in almost all the capital’s boroughs. Central London seems to have cast off all memory of the baleful events of September 2008, such as the fall of Lehman. Prices in the best streets are close to their levels of September 2007. Investment bankers no longer fear for their jobs. Some also see a house in Chelsea as the best hedge against the rise in inflation, which could be one side-effect of the Bank of England’s quantitative easing (its stratagem to stimulate the economy). Central London’s surge is being driven by a lack of supply. But Prime-location.com says the exuberance will be tested when reluctant landlords opt to confront the picky new buyers.
Viewings The downturn made millions of homeowners disinclined or unable to move. Among some, staying put has bred a new appreciation of their home. Among others, there is a sense of deprivation. One of the joys of climbing up the ladder was the opportunity to take a peek at the lifestyles of other households. This month brings opportunities for those who miss the thrill of viewings. Heritage Open Days (September 10-13, heritageopendays.org.uk) gives you the chance to see 4,000 diverse buildings, including the Modernist High Cross House in Totnes, Devon. London’s Open House scheme (September 19-20 openhouse.org.uk/london) offers still more architect-ural highs.
Source: The Times 4 Sept 2009
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