Current Housing Market

April 2009

Just lately, the housing market is in the headlines almost every day of the week. Quite often, the reports are conflicting – one bulletin says that house prices are falling and another will say that there has been a mild increase. Only yesterday, Monday, 6 April 2009, the headlines stated “House Prices Rise by 2%”. So exactly what is happening?

S J Property Services in Stretton have a thriving sales and rental business. It is a family-run business with sisters Julie Fox and Helen Potts at the helm. They have been members of the Burton Business Club since the beginning of 2008.

Both Julie and Helen have opinions on the current state of the housing market. Although sales are much slower, Helen says they have had a ‘clutch’ of new listings. “We thought that the HIP (Home Information Pack) changes on Monday (6 Apr) would make a difference in that no-one would want to test the market and put their house up for sale,” says Helen. “In fact, it seems that homeowners don’t understand the implication of the HIPs and, in turn, it isn’t affecting the number of properties coming onto the market. As to the 2% increase in property prices – we’re certainly not seeing that in Burton and surrounding areas. If anything, potential buyers are still offering well under the asking price”

On the lettings side, Julie says: “We have new listings every week and the market is getting to saturation point. People wanting to rent now have more choice and can bargain the monthly rental down to their affordable level.”

The introduction of legislation into the rental market is also making it a tougher place for the property developer. S J Property Services ensure that their rental properties on offer meet all the required legislation. This is making the company a strong player in the Burton property arena.

Both say that the sales market will stay fairly flat for the foreseeable future. “The ‘Bank of Mum & Dad’ has dried up,“ says Helen. “Buyers are now having to save hard for their deposits. We anticipate that this current situation will last for at least another six months. “

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