John GoodwinJohn Goodwin Property Professionals
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Property Market Comment

There have been a wide range of comments and opinions expressed locally and nationally about the current state of the residential property market.  The assessment of a market in decline seems to be unanimous with sales levels reducing significantly and prices yet to find their new levels.

The advice to prospective vendors is to concentrate on the need to choose an agent carefully at a time when experience, professionalism and a detailed knowledge of the local market are essential ingredients. The most recent news for the residential property market relates to the new package of measures announced by the government which are designed to help stimulate the housing market.  These are undoubtedly aimed at providing help where it is most needed and I am sure buyers will be aware that stamp duty is now shelved for a period of 12 months on property priced below £175,000.  This represents a significant saving to purchasers and I am sure will help stimulate sales.  The proposal to make available interest free loans to households whose incomes are below £60,000 per annum may be worth investigating in greater detail.  Such a proposal will undoubtedly extend to a large number of households in the Herefordshire/Worcestershire/Gloucestershire area and when the full details have been made available this is a proposal which could help many prospective purchasers.  I would also suggest however that it will be important to read the small print.

Generally however the government initiative is only likely to have a relatively small effect and it is now important that the banks and building societies become keen once again to assist house purchase.  A sensible lending policy is one of the key requirements for an improved property market.

ENERGY PERFORMANCE CERTIFICATE REQUIREMENTS

Further changes are due to be introduced on October 1st relating principally to Energy Performance Certificates:

1.         All residential properties which are offered to let after October 1st must have an Energy Performance Certificate.  All residential landlords need to take note of this requirement as failure to comply can result in fines being charged.

2.         All commercial properties offered for sale or to let will also require an Energy Performance Certificate after October 1st.  For properties already on the market an EPC will need to be in place before January 1st, 2009 or when a sale or letting is agreed.  All new instructions after October 1st will require an EPC.

3.         All residential properties on the market after October 1st will require an Energy Performance Certificate.  There are currently still a large number of properties on the market that did not require a Home Information Pack and as a result do not have an Energy Performance Certificate.  These properties still do not require a Home Information Pack but a circular from the Communities and Local Government Department indicates that they will require an Energy Performance Certificate.

Autumn is generally a busy time for property sales and agents and vendors will be watching anxiously to see whether there are any signs of an improvement.

 

JOHN GOODWIN  FRICS                                                              4th September 2008

 
John Goodwin