We are all fully aware of the current economical state, but I don’t think we quite realise what is happening in the housing market. A report released by Halifax has suggested that our homes are losing an average of £130 per week off the total value for the past 12 months!
The last 12 months has seen house prices drop 4.2, the biggest fall since 2009 when we were in the peak of the recession. May last year saw the average home costing £167,207, but this has dramatically dropped by £6,688.
So, “my house has lost £6k”, it’s not a great concern if you have no intention of moving, but it is a lot worse for anyone trying to sell their home. Some home owners are now in negative equity, whilst people selling are having to lower the price of their home; my Dad being one of them who has lowered the asking price by nearly £50k , despite the initial valuation being realistic.
Halifax housing economist Martin Ellis claims this decrease in price will stop later in the year, ” We expect a moderate improvement in the economy during the remainder of 2011 which, combined with continuing low interest rates, is likely to support housing demand.”
How confident are we that this will happen though? The housing market seems to be driving people mad, looking through one forum many of us are going through the same scenarios! The chain breaks down for silly reasons, houses “overpriced”, people being picky, estate agents messing us about, we can’t get a mortgage. We are all in this together!
Although the average house price has actually increased from April to May by £126, it is still nearly £7,000 less than last May and the lack of mortgages being handed out is probably what’s causing some massive problems for buyers! Without extending your home to add value to your home, you are going to struggle to maintain its current value.
Just to get a gauge of how far apart some of the market is I took a look at the Telegraph’s figures for the least expensive and most expensive streets in the UK. The average home on Wynnstay Street is a measly £31,081, whilst in the posh end of London, Kensington Palace Gardens the average home costs about £19.2 million! That’s a huge gap between the less well off people and millionaires in the country, it’s a bit scary to think about.
I’m crossing my fingers, touching wood and saluting magpies in my superstitious way to maybe get some luck in the housing market, not just for me but for all you out there too!
Anglian Home Improvements raising the standard since 1966. Visit the Anglian website for information on our conservatories.