Enough winter blues, time for a barbecue summer
That was the week in property, by Mike Hoffa
13th February 2012
We’ve definitely hit the winter blues as everyone seems to be a bit grumpy at the moment.
Just look at the news. We’ve got Syria slowly but surely massacring its own people, Iran about to stick two fingers up at the Western world by announcing they’ve got some shiny new nukes and the Greeks are kicking off again about the fact that no-one there has any money.
It’s not much more fun over here either, what with the bankers having to become charitable workers for fear of the angry mob with pitchforks (otherwise known as the government), Suarez and Evra doing their level best to kick off a race war in Britain and just about everyone with anything to do with the NHS wanting to lynch the Health Secretary, Andrew Lansley.
“I may not be able to don a UN blue helmet and sort out the Middle East, but I can bring some rays of light onto the property market.”
And to top it all off, the original and best supervoice diva Whitney Houston found the whole situation so untenable she’s decided to slip off the mortal coil completely, may she rest in peace.
So it’s about time for a bit of the old Hoffa antidote to these winter blues. I may not be able to don a UN blue helmet and sort out the Middle East, negotiate a truce between two footballers or sort out the NHS – and I certainly can’t do anything for poor old Whitney – but I can bring some rays of light onto the property market.
How you ask? Well, let me tell you that the first time buyers are on their way back!
Yes, that’s right folks, figures for January suggest the base of the property market may be getting slightly more solid. To be specific, the Telegraph reports that mortgage approvals rose 30% on the figures for January 2011 (according to chartered surveyors E. serv), with around a quarter of these approvals, just over 15,000 in total, being given against homes worth less than £125,000 – prime first time buyer territory.
And whilst I’d be the first to admit that one swallow doesn’t make a summer (or perhaps more apt to say one snowfall doesn’t turn Britain into a ski resort), this does seem to tally with a general trend towards people moving money towards property. After all, where else are you going to stick it right now?
“If the base of the pyramid formed by the first time buyers starts to look a bit more solid then the rest of the market will follow, hopefully with the economy in tow.”
Repossessions were also at their lowest level in 2011 since 2007, according to the Council of Mortgage Lenders. Whilst some cynics suggest this is short term trend that is unsustainable and that first time buyers are rushing to beat the end of the 1% stamp duty holiday (which kicks back in come March), I think it tallies with my recent observations that people are just getting on with their lives. Let’s not forget, with rents at record levels, home buying is looking more attractive too.
The good news for all of us is that if the base of the pyramid formed by the first time buyers starts to look a bit more solid then the rest of the market will follow, hopefully with the economy in tow.
So put away that snow shovel and dust off the barbecue ready for a happy summer, I say. Just don’t ask the Iranians if they’ve got anything to help light it.
About the author:
Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.
Mike’s question of the week: At last, some real green shoots coming through?