Autumn 2009 review

• Our experince is that house prices have dropped by between 35% and 40% of their peak.The percentage fall is higher at the top end and lower in the 400 k and less range.
• We have seen a significant increase in demand from first time buyers since the start of this year.This demand has been driven by lower house prices and low interest rates .
• Interest rates are at an all time low and fixed rates options are attractive
• Despite what is being reported.lenders are eager to lend to solid applicants.
• Lenders are placing a greater emphais on proven ability to afford a mortgage.Proof of this may be terms of savings or rent payments over a period
• Based on the latest international information it is likely that mid 2010 will see a return to growth in world markets.Sentiment in Germany is improving and there are encouraging comments from the ECB anfd the Imf. The us has officially moved out of recession as at the end of October 2009.However there is doubt whetehr growth will continue and the world economy is still looking shaky with many countries having tried to borrow thwie way out of recession.
• Houses are selling at the lower end and it is reasonable to assume that the market is close to the bottom here. We expect upper market prices to fall to by around 45% to 50% of their peak