11
Dec
A Good Position
As the final curtain falls on 2009 it is a good and appropriate
time to reflect on what this year has meant to the property market.
I shall at this point suggest that my comments will be limited to
Hampshire as will refrain from trying to decipher the UK market as
a whole as the North, South divide is becoming more and more
apparent.
We have a market where there is more demand than there is
supply, this however is likely to be addressed pre election in
2010. We have values very slowly but gradually recovering, this
type of growth is both healthy and sustainable. It is also partly
fuelled by the shortfall in supply but I think we should get used
to this for the next four or five years as I believe demand will
continue to outstrip supply. The availability of mortgages is on
the increase, safe lending is now quite easily accessible and this
makes for a solid foundation again for a sustainable market
recovery. Short fixed term mortgage deals are at their lowest level
for many years. This is indicative of the view that interest rates
are likely to stay very or relatively low for the foreseeable
future.
All in all in the second half of 2009 confidence has started to
return. The overall effects of the recession have been far less
than predicted and the way forward, although tempered with
financial constraints, will find its own path and its own level.
There may be huge National debt and the future of the UK economy
may have been mortgaged for many years to come. Nonetheless this is
likely to reduce the risk of another uncontrollable bubble and keep
the housing market on a more stable footing eliminating the
likelihood of future boom and bust.
As far as I and Penyards are concerned if the market 2010 and
beyond was unchanged from the second half of 2009 that would be a
very inspiring prospect.
by Graham Evans, Managing Director, Penyards Country
Properties