Summer brings a cool change to uncertain market.....

Double dip, even the most optimistic property experts .....

Double dip, even the most optimistic property experts aren’t ruling out another house price slide in the UK. A survey by Zoopla shows that confidence in the property market is wavering due to the fear of job losses, interest rates hikes and a scarcity of mortgage availability . The surge of selling activity witnessed this spring has fizzled out as buyers opt to sit on their hands. The latest housing market survey from Nationwide shows price gains more or less stalled in June (up by 0.1 per cent).
The said estate agents are keeping an open mind. Robin Thomas of Strutt & Parker in Exeter is not overly concerned about the slower housing market activity he is experiencing in the West Country.
“Viewings are down since the early spring, due in part to continued uncertainty about the new Government, the implications of the Budget and nervousness about cuts in public spending to be announced over the next few months, “he says.
Combine these factors with probably the best weather in June for many years, the World Cup , Wimbledon fortnight and some people starting their holidays early, and it’s no wonder the market is relatively quiet.”
And it’s not as if the sales have dried up completely. Chesterton Humberts Taunton office has recently sold two houses for more than £100,000 over their asking price. “If you price properties five per cent lower then you immediately get a sharp lift in activity and offers, “ says David Adams of Chesterton Humberts. “Prices got ahead of themselves due to the stock shortage. It wasn’t sustainable”
He is frustrated by the time it is taking to complete sales. “Government searches are taking up to six weeks to come back in places.
The departments haven’t been able to cope with the uplift in requests since 2009, “Adams says. “They used to take just one or two weeks”
Robin Thomas agrees: “We currently have a large amount of property sold subject to contract, which we have agreed over the last six weeks, but it seems to take longer and longer for solicitors to get contracts exchanged. I do not think the removal of HIPs has affected the market or sped up the sale process as yet.”
For the time being the double dip seems to be more of a 5-10 per cent correction. “We won’t have a 2008-style property price crash simply because interest rates are so low, “Adams says. “The major risk is banks withdrawing credit – which they are. I hope this is only a temporary blip. If banks stop lending because they’re afraid of price drops, it becomes a self-fulfilling prophecy.”
Ray Boulger of mortgage broker John Charcol expects any price falls to be modest and says now is a as good a time as nay to buy if it’s the right property at the right price. “I don’t see prices moving up quickly but still expect a gentle upward movement over the next few weeks,” he says.
If this is the case there is still time to add value to your property before you sell. A survey by movewithus.co.uk suggests that creating an extra bedroom could increase the price of an average house by more than £14,500 and installing an alarm could raise the value by £2,650.
Or you could hope that the double dip is simply a summer lull and prices will go up again before the end of the year.”I recall it being just as sleepy this time last year, “ Robin Thomas says. “ It was only when everyone returned from their summer holidays that we saw the market more active and we experienced our busiest two months from mid-September to mid-December. “

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