House prices fall

According to a national newspaper today, house prices have fallen for the first time in several months. Sky News quote for the first time in ten months.

When we look at the housing market as we come out of a recession we expect instant results, but the difficulties in obtaining mortgages for first time buyers remain. This is bound to affect the housing market and their prices.

I have heard many stories of mortgage brokers who are considering whether to give up their jobs to concentrate on earning income elsewhere. One such adviser told me that the mortgage products are so hard to find. People with low earnings, adverse credit ratings or high loan to values just cannot be accommodated at the moment.

Also, we have seen the stock that went on the market in the summer last year finally sell as estate agents books look smaller and smaller. As they have been on for such a long time, homeowners have in some cases been forced to take low offers to get a sale. this will have caused the average house price to fall.

This is most probably just a stutter. We wait for the weather to warm up, flowers to fill the garden and houses to look attractive for the property brochures. We have alot to look forward to this year: a general election and change of government, a World Cup of such magnitude that has never seen before with an England win and a long hot summer.

So as we look ahead to a year of positivity, we can't think we are ready yet for another property price crash. But of course, if there is a huge increase in houses for sale in the summer, then this could have another negative impact on house prices. Its been a long time though since house prices were this affordable with interest rates so low. Could prices really fall any lower?

Gary Edgar

Chartered Surveyor

www.esurveyors.com

08456 437097

The 2010 Property Market in brief - Gary Edgar - E Surveyors

The property market has picked up and more homes are selling than they have done for some time. Prices achieved have risen and estate agents report that sales are achieved more quickly and closer to asking prices.

Although it is difficult to predict whether this will continue throughout 2010, we have to remember that as we get closer to a general election, central government will not want a property crash and will continue to spin, telling us the recession is over and we are on the road to recovery.

Once the May election is over, a successful World Cup in South Africa will hopefully see the pubs full of football fans enjoying a long hot summer of Rooney goals a plenty. Such confidence in the national football team will see consumers spending and working hard to afford it.

Rooney can't guarantee another 1966, nor can Gordon Brown expect a 1988 boom, but we are certainly hoping for a good performance all the same.

RICS Surveyors fees

In January we saw VAT return to 17.5%, but for customers of E Surveyors, this increase has not affected them.

Surveyors fees have been held at 2009 prices and we hope that these highly competitive prices will encourage more people to opt for a homebuyer report and not to rely on the typical mortgage valuation.

In January, I have personally seen at least two houses with drainage defects that for a mortgage company would not have been considered. I have seen dated electrical systems and older style central heating boilers that would not be considered significant to the value to affect the mortgage security. And sulphate attack to a garage floor, again would a mortgage valuer consider this a defect that may adversely affect the value of the property for security purposes?

Yes, there are many defects we regularly spot on surveys that the mortgage company just do not want to be informed of. We are aware of them, but cannot report on them unless specifically asked to.

So for peace of mind and to protect your biggest investment, ask us what we think we might find in the house you are looking to buy. A quick look at the details on rightmove or primelocation and we can advise you which would be the ideal survey to go for and the things we might look out for.

All this at last years fee scale.