Sellars Market: The Latest Property News From Banner Jones
24 February 2010
Chris Sellars, Banner Jones Director and Managing Director of the area’s leading HIP company myHIP Ltd looks at the property market.
A Town in Occupation
Following a recent meeting the Chesterfield MP Paul Holmes took up the challenge of a
local businessman to walk around the town to see how many shops stood empty. The
result was that the town proved to be in good shape. Undeniably there are empty units,
but less than in many other areas. Glumangate is a good example where one empty unit
has been refurbished and is now open and at least two others are currently being
developed. There is no impression of stagnation.This is against a national trend in the
building of high end residential properties. Industry sources have estimated that 60% of
housing projects being worked on before the property market collapse have been
abandoned, some after years of work. A Sunday Times survey of architects’ practices
found that a series of prestige developments have been put on hold since prices starting
falling in 2007.
Cash Buyers Make 34% of All Sales
The proportion of cash buyers is rising as mortgage lending continues to be problematic.
In a new and unpublished update the Council of Mortgage Lenders (CML) says that in
December, cash sales rose to 34% of all transactions, twice the historic norm. In the original report, which does not appear to have been widely circulated, the CML said that house sales last year almost certainly hit a postwar low. It said that 2008 sales were definitely the lowest since the war, and 2009’s final figures may turn out to be even worse. The CML report, by Bob Pannell, the CML’s head of research, said then that it expects sales activity to improve only very slightly this year. It warns that house prices are volatile and not necessarily a good barometer of the underlying health of the housing market.
According to its very latest figures, for January, mortgage lending slumped 32% from
December and 21% from January last year. The monthly total for last month was £9.1bn,
the lowest monthly total since February 2000.
Don't Break HIPs Law, Shapps Tells Industry
Estate agents have been told by shadow housing minister Grant Shapps to keep obeying
HIPs law. Shapps, who has promised to abolish HIPs if the Tories win the election, said:
“I do support adherence to the requirements of the HIP regulations and will continue to
do so until those requirements are removed through legislation.” If the Tories do get in
at the election, Shapps has warned that it could take three months or so to get rid of HIPs.
Mike Ockenden, director-general of AHIPP, said: “AHIPP is aware that the uncertainty with
regards to the future of HIPs has led to a few isolated incidents of non-compliance with
the regulations. “The regulations, however, are the law of the land and it is unacceptable
for any estate agent to flout them. AHIPP will be unstinting in its determination to bring
to account any estate agent breaking the law.
Auctions Sales Shrink to New Low
Just 201 properties were sold at auction last month, the Essential Information Group has
reported. Only 18 sales were held in the UK and total lots offered were 324 – meaning
that a sales rate of 62% was achieved. The number of properties sold and the amount
raised were both 11% down on January 2009.
The UGG Factor
Let’s talk about Uggs — not those Australian sheepskin boots — but urban grannies and
grandads; the senior citizens who are moving back into town and buying top-quality
apartments. This demographic wants to be closer to shops and cafes, and unintentionally the housebuilding industry has catered for the UGG's needs. These luxurious flats were built for young professionals, but they cannot obtain mortgages. However, as a new Knight Frank reportunderlines, housebuilders are failing to tackle the problem of accommodating the growing number of pensioners. Just 5,000 homes are built every year for this clientele, partly as a result of the poor image of the “retirement village”.The reality may be architecturally pleasing, maybe with a pool and a youthful spirit, but the name is dispiriting.The lack of provision for this age group has also been caused by planning problems, exposing yet another deficiency in this system. Each of the political parties is proposing reform. But whatever their intentions, housing schemes that are being completed may fail to please the twenty somethings or the seventy somethings.
