Can 2013’s housing market build on the stability of 2012?
With 2012’s property market demonstrating remarkable resilience despite the poor economic climate, can 2013 begin to move towards a more active market?
2012 enjoyed an uncharacteristic sprint finish; November saw a 5 per cent month-on-month increase in transactions and remained on par with the traditionally busier October. This activity is supported by the latest LSL/Acadametrics House Price Index, which revealed a £7000 increase in average house prices.
Nevertheless these seemingly positive figures are largely down to cash rich buyers taking advantage of falling low loan-to-value (LTV) mortgage rates. In short, the market mirrors current Dancing on Ice reality starlet, Pamela Anderson – it’s somewhat top heavy – and in order to glide through 2013, avoiding any trip ups or crashes, the foundation needs to be smoothed out. That means tackling the first time buyer head banger.
While higher LTV mortgages are beginning to return to the market, they remain bound by strict lending conditions. And as David Brown, Commercial Director of LSL Property Services, rightly points out until lenders’ criteria is loosened we won’t see any sustained increased in new buyer activity and activity as a whole.
Content correct at time of publication