The annual summer lull in the housing market has seen a fall in asking prices across the country, with London properties being valued at almost £15,000 less than they were in July.
According to property experts this drop in prices is not necessarily reflective of a new housing slump but is the result of sellers realising that the needed to be more "aggressive" in order to sell their
home in the summer months.
In recent months the housing market has seen what some are describing as a small upswing, with both sales and enquiries rising month on month for the last quarter.
Despite this confidence in the market remains relatively shaky, because even after the increases, sales remain much lower than before the start of the slump.
A major problem that still remains for all those involved in the market, including estate agents and online conveyancers, is the lack of available mortgages for potential buyers. Banks remain much more cautious in the wake of suffering severe losses due to so-called toxic assets.
This lack of mortgage availability is obviously a big factor in preventing a speedy recovery across the market, with first-time buyers especially finding it tough to get on the housing ladder at all.
Buyers and sellers affected by lack of mortgages
Miles Shipsid from Rightmove, said: "After several months of activity and prices revving upwards from winter's low point, both will start to hit the limiter without more mortgage finance.
In spite of pent up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders."
This analysis coincided with the opinion of the Royal Institution of Chartered Surveyors whose recent market report found reasons for optimism but again questioned the role of banks in exacerbating the downturn.
"If
mortgage availability remains insufficient to meet the increase in buyer demand then it is possible that prices may slip back again, especially if unemployment continues to rise and mortgage rates increase," said a spokesman for RICS.
Shipside did sound some notes of cautious optimism though, he noted that despite this small drop, around 75% of homeowners didn’t expect prices to fall in the coming year, which suggests a higher level of confidence in the market that has been seen in the last year.
Conveyancing solutions
Clearly the downturn in the housing market has made for tough times in the
conveyancing sector. With the year-on-year sales drop being quite pronounced, many firms have had to lay-off staff and reorganise their business model in order to remain competitive.
This is good news for home buyers though, with the market showing signs of life conveyancing solicitors will be offering better deals that ever in order to attract custom.
A good way for consumers to save money is, like in many other fields, to look around to find the best deal. Going with a local
solicitor might seem like the easiest option but many experienced online conveyancy solicitors now offer a much more personalised service that is not only cheaper but can also be followed through the process by checking online.
