The tone of house price surveys grew markedly more pessimistic this week as no early end to the mortgage famine seems in sight.
The Times – 4 July 2008
These are the two key trends: homeowners, burdened with higher bills for almost everything, are in no mood to contemplate relocation, which is bad news for businesses such as estate agents, removals firms and homewares retailers. Second, the performance of different locations is diverging: for the moment, at least, Scotland is proving resilient while the formerly irrepressible Northern Ireland is struggling. Here is what you need to know about the facts behind the figures – see full article
We’re seeing a similar trend with tenants renting in London. Tenants are for the moment, at least, staying put. Vacate notices are down at least 25% on a year ago.
Interestingly there are more instructions of mid price range property – circa 40% up. These are very often new landlords – to us, at least. Seems that landlords are going multi agency when their tenants do give notice.
In the meantime rents in Central London at the bottom end are rising (we all need to live somewhere), whilst in mid price ranges adjusting asking prices have moved downwards to attract tenants. Landlords are generally receptive and the volume of lettings business agreed is actually up, year on year.
It’s all part of a picture of uncertainty; landlords worried they won’t find a tenant. Tenants staying put to “wait and see” (a minor job cull in the city won’t have helped).
Amazingly for a government that revels in micro interference, there’s a total lack of initiative from them on this.
Barry
http://www.chard.co.uk
barry.m@chard.co.uk
Comment by barry manners — 5/7/2008 #