As the year progressed, this situation softened – with the rental market becoming extremely price sensitive and more property available than tenants requiring it. This trend has resulted in the average rent drop by 5-10% across both London and Country.
In general, for many residential agents, core business in 2008 revolved around four key market drivers – divorce, death, displacement & debt – illustrating the fundamental and base nature of business.
For the 2009 UK Residential Market Hamptons International predicts house prices to drop by a further -5% in 2009, taking the overall drop to up to -30% since the peak of 2007 – but the UK residential market will “bottom-out” in spring 2009.
With the recent Bank of England base rate cut and Alastair Darling’s decision to support the banking community, Hamptons hopes to see increased confidence in the UK residential market during 2009.
However, this increased confidence will not happen overnight. Any uplift in consumer confidence will be dependent on factors such as mortgage availability, unemployment levels, the degree and duration of recession on the high street and the overall global economic outlook.
Hamptons also predicts that the challenging conditions of 2008 will have taken their toll on the residential agency market and it anticipates there will be 30% fewer estate agents in business next year, with clients gravitating to the more established agencies.
Do you agree with Hamptons – will there be 30% fewer estate agents in business next year? Tell us what you think using the comment section below