Where Are The First Time Buyers? Part 2

Well over the weekend yet more negative news from the media regarding the UK Property Market and in particular the London Property Market where it is stated as factual that prices are still dropping. While it may be true overall it is not true when looking in some areas of London where prices are stable.

So how does this affect the First Time Buyer?
You will have read from my earlier blogs that I do not believe that buyers when looking to purchase a property must first of all be concerned as to price. In my view the property is first and foremost somewhere to live and only secondly as part of a long term strategy an investment since everybody knows that property values go down as well as up.

On this basis it is still wise to purchase a property since mortgage payments at the present time are still lower than most people will pay in rent.

So on the assumption that you are proposing to buy a property it is important that you also understand that the process can take on average eight to twelve weeks to be finalised and in the case of leasehold property even longer.

After you have negotiated the purchase price your lawyers start working on raising questions about the property from your sellers through their lawyers and other agencies including the local authority. In addition they will deal with the contract checking progress on your mortgage and preparing the purchase documents including a transfer. It is only when all the information has been obtained that matters can progress to exchange of contracts.

On exchange the completion date is agreed which is usually ten working days from exchange to allow sufficient time to deal with last minute searches and questions which may arise on the mortgage.

On the completion day access is usually available from midday and in the event that either you or your seller fails to complete for whatever reason compensation will be payable by the defaulting party.

In my next blog I will attempt to give a brief overview of why Identification and proof of address is now needed on all property transactions in the UK

The Great Property Hype

Well today it's Bank Holiday so I think it's appropriate to discuss what the media and the lending institutions have said since I last wrote .

It appears if the signs are right that the market is agreeing with my comments in earlier blogs. So far as I can tell they believe that the fall in the property market will be short lived as the availability of mortgages will improve although they will not be as freely available as before the uncertainty arose.

The media is now trying to talk up the property market but HIPS still continue to have an adverse effect on the speculative marketing of their existing property after an investor has found another property to purchase.

In the next few days I will be posting details of my attendance at the Conservatives discussions on how to improve the home buying and selling experience be it lenders investors or the ordinary client.

I hope you have had a restful break.

The Property Market

Afternoon. I have had a hectic day spent mostly discussing with banks and clients as to the effect of the Home Information Pack, Northern Rock and the credit crunch on the property market.

I have explained to them that in fact the information being provided in the media is unhelpful and misleading since it takes no account of the facts.

The imposition of HIPs onto sellers has undoubtedly created an unwillingness by UK property owners to put their houses on the market speculatively in the hope of being able to purchase another property. The reality regarding the fall in property prices is again designed to worry potential sellers since the increase in value they have never received and the consequent reduction in it's perceived value will have also affected the property that they may be proposing to purchase.

The reality regarding the mortgage situation is not quite so clear since different lenders are taking a different approach.

Tomorrow I will be speaking to those clients who are proposing to obtain property for letting purposes or those who already own property and may be questioning whether or not to sell.

I hope you have had a good day.

Reg Toy