It seems to be a waiting game in property at the moment – is it the right time to buy?
There’s no doubt that once confidence returns to the potential buyer that their purchase won’t be worth less than they paid for it in the coming months, people will start buying again and the knock on effect will see property prices start to increase and off we’ll in property mania once more. But where will this confidence stem from?
News and figures released still look relatively bleak right now, with the Citizens Advice Bureau (CAB) reporting a 49% rise in secured loan and mortgage arrears enquiries and the CML confirming a 2% gross lending decline in May. Positive headlines such as CHL Mortgages announcing a 15% reduction in their total arrears and Infoserve reporting a 94% increase in internet searches for Mortgage Advisers are still overshadowed by the continuing Banking crisis and global economic downturn.
HM Revenue and Customs figures showed 60,000 completions took place in May, down from 64,000 in April.
It seems highly unlikely that a sudden increase in property sales and prices is on the horizon given the lack of funding within the banking system to supply high demand and recent increases in fixed rate mortgages in the UK only adds to the reasons why many are choosing not to go out and buy…… Bridging Finance Companies have seen their number of completions increase significantly over the previous months with funding lines being reintroduced.
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