Pictured above: Martyn Morgan
"What is happening in the property market?", asks Martyn Morgan,
Senior Partner and Head of Residential Property at Talbots
Solicitors. Martyn goes on to give his views as follows:
"With the abolition of HIPs and, amid reports from Rightmove
that agents have received over 30% increase in new instructions, we
should all have a "feelgood" factor.
To counter this, however, we read reports about double-dip,
potential increases in interest rates and job cuts in public sector
which will further damage public confidence.
Confusing?
Do you remember those scary days at the start of the recession
in 2008, when we all tried to predict how long the bad times would
last? Some said 6 months, others said 12. Well, here we
are into our third year and, although technically we are not in
recession, we in the property market are some way off the volumes
and escalating prices of 2007.
Most of us were excited that our own properties were increasing
in double-figure percentages each year but, I believe, we all now
understand the folly of that and the knock-on effects which
resulted in lending being freely available - but don't blame the
lenders - it was we who asked for the money!
So, yes, still confused, but the crumbs of comfort we draw at
Talbots will show that we are currently running at the same number
of transactions for the first 7 months of this year as we did in
2009, although HM Land Registry figures and lenders indicate that
there has been a national slow-down. (This may be explained
by Talbots gaining a greater market share, or distorted by regional
rather than national activity.)
Nevertheless, we do remain optimistic and keen for the property
market to continue its fight against the malaise. No, we do
not want to revert to substantial price increases, which serve only
to damage the market, but we do feel that a period of stability
would boost the market and all those involved with it.
We still hear tales from clients who delay investing in the
property market because they fear there may yet be a further
reduction in prices but, for most of us, moving house is a
lifestyle decision and not solely an investment.
Do we put on hold our ambitions and desires because of fears of
property dips?
If we choose to rent rather than buy, then we delay the time
when we can make the rental property a true home and put our own
stamp on it (and rent paid is dead money that might be better spent
in reducing a mortgage on our own property).
Indications are that first time buyers are slowly coming back
into the market, which is what we all need and developers are
beginning to move some of the stock that has hung around for far
too long.
So, those green shoots of bygone years are not yet fully grown
oak trees but, at least, they are surviving and inching upwards in
a difficult market rather than wilting! Let's be positive -
there are many industries, not just solicitors, which are dependent
upon the property market, more so from volume transactions than
price increases and we all need to support each other for the
common good.
Home-owners, GO FOR IT, you need a change and a challenge and
cannot afford to let your lives stagnate!"