This is among the most typical questions I get asked by homeowners who are unsure of what they need to do with their prized asset, Their House!
Whilst any guidance could be provided on an individual basis, as a general rule the following ought to be noted.....
In December, 2010 the Bank Of England said mortgage approvals totalled 42,563 down from 47,287 in November and are now running at less than half their lengthy run average. This together with the imminent threat of public sector employment cuts along with a weak regional economy suggest that short term house cost falls may be to come. The growth in public sector employment over the past 10 years has been substantial and leaves the North of England particularly exposed to government cuts with 23% of the workforce employed in this sector. Nevertheless, we think that low interest rates will put a floor under significant price falls and limit price drops this year.
Looking further ahead we see a property marketplace incredibly significantly split between high end properties in affluent areas where you'll find great schools, very good transport links, powerful professional demand where the equity rich buyer is and the extra mainstream properties where the buyer is reliant on mortgage availability specifically with the likelihood of extra proof of affordability forms to total. This lack of mortgage credit and/or lump sum cash deposits will in our view drive new demand for rental properties. No matter whether this demand is met by supply will depend significantly on investors being attracted into the marketplace. Though the market waits for these new investors there will likely be a shortage of rental stock which could result in an increase in rents.
All by way of 2010 along with the start of 2011 we have discovered the local rental marketplace very powerful although we are also seeing as inside the sale marketplace a distinct split between the very best properties compared to the mainstream. We do anticipate this divide to grow over the medium term with the top properties leading the way albeit slowly inside the speed and scale of the recovery. We believe the north east recovery will occur inside the next few years specifically in prime areas with equity rich buyers purchasing homes against low mortgage availability for the mainstream. This lack of mortgage availability will exclude a lot of prospective buyers from the market which will inevitably put pressure on the rental sector and act as a driver for rental growth.
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Ronaldo Santagize is an avid fan of the automotive industry. Check out his site 4wd Lift Kits to see all of his 1992 Chevy Tahoe Lift Kits
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