Debt and General Election to stall housing recovery in 2010

Jonathan Haward, Chairman of the County Homesearch Company, said: "The housing market will remain subdued in 2010 as restricted lending and the mountain of national debt continue to act as strong financial barriers to homeowners, severely hampering activity and causing house prices to flatten out. The forthcoming General Election will further cause the market to falter, as homeowners delay a move until the new Government and its policies are established.

"If, as seems likely, a Conservative Government is to take over next year, the scrapping of Home Information Packs would see an influx of stock come onto the market, ironically keeping prices level or even causing them to drop off in some areas where an oversupply occurs.

"Niche pockets of the market, where exceptional circumstances apply, may see slight price rises. Conversely, we are also expecting isolated areas of decreasing prices due to oversupply where homeowners cannot put off moving.

"The village of Wickhambreaux near Canterbury is set to experience house price inflation over the course of 2010 as the new high speed Javelin Train service commencing this December cuts the commute from Canterbury into the capital by 23 minutes – the greatest reduction in journey time of all the new services to the towns of Kent.

"The very low supply of properties coming onto the market in Henley on Thames will continue throughout 2010, pushing prices up in the desirable historic town as wealthy buyers compete to move to the area.

"Expected to see sustained high demand for property next year, Cambridge is tipped to be a sensible place to buy for those looking for a more stable long-term investment. The attractive university town’s proximity to London and good shops and services make it a popular choice for homebuyers.

"Brookwood near Woking and Guildford, is just beginning to be discovered by homebuyers looking for a Surrey village location. It benefits from its own train station, with services direct to London Waterloo in approximately 40 minutes, as well as easy access to the M3. The village is already receiving increasing interest from homeowners, suggesting that house prices will start to climb in 2010.

"Property in the vibrant maritime city of Plymouth, whose centre is undergoing an extensive regeneration programme, is currently under priced. This city will spring into the limelight in 2010 as those with deposits saved up look to purchase before the investment starts to push prices up."

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One thought on “Debt and General Election to stall housing recovery in 2010

  1. David Clark

    As an estate agent flat house prices are not necessarily a bad thing. Falling house prices or those rapidly spiralling are the situations that cause trouble in different ways. 2009 has generally been a much better year and as I’m sitting 15 miles north of Cambridge with a 15 minute max train link I suppose I may enjoy some spin-off from people priced out of that Cambridge market!

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