You are here: Home - News -

Minor drop quashes fears of a recession

by:
  • 04/12/2001
  • 0
Bradford & Bingley optimistic over outlook for prices

Bradford & Bingley recorded a 1% fall in average house prices at the start of November compared with September, quashing fears of a looming housing recession. Research from the estate agent showed that the property market is not in the dire straits experts had initially thought and the economic situation is not having too much of a bearing on house prices.

Ian Davies, regional business director at Bradford & Bingley, said: ‘We expect there to be a further degree of caution among buyers moving forward as they wait to see how the economic situation pans out. But, if you are thinking about selling, rest assured that buyers are still out there and they are making decisions fast.’

The research collated from each of the Bradford & Bingley branches showed that properties sold at the start of November are receiving on average 96% of the asking price, compared with 97% in September and properties are actually being sold at a faster rate now than in previous months.

Davies said: ‘People are continuing to take advantage of great mortgage deals, following recent interest rate cuts. The marked difference is that demand in the market is now largely made up of serious buyers who need to move, rather than those making an aspirational purchase.’

There were regional differences on the final selling prices of property, with homes in the South East receiving more than those in the North. However, home owners in the South East believe house prices have been affected by the economic situation more than those in the North, with figures 75% and 16% respectively.

Davies does not deny a slowdown in property prices but remains optimistic on the outlook. He said: ‘What we are seeing, and four out of five branches up and down the country agree, is that house prices are slowing and this has been happening throughout the summer. Asking prices are unlikely to rise significantly in the short term, but rest assured we are not seeing a widespread falling back of value.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
My client is about to move abroad and wishes to rent their house out. Do any lenders lend to people in this situation?

Obtaining a mortgage for a property to be let is no longer difficult as most lenders have suitable p...

Close