Announcing widespread government spending cuts was never going to be good for the property market. Panicked private company’s dependant on government contracts wait nervously to see how bad things will be for them. In the public sector the writing is on the wall, massive job cuts or pay freeze and pay reduction are incoming. It is uncertain times in the extreme.

At the start of the summer we saw the scrapping of the ever unpopular Home Information Pack. Following this announcement the number of property placed onto the market sky rocketed reversing the trend of more buyers than correctly priced available property. The additional units entering the market helped to drive down prices, helped along by issues in the wider economy.

Local estate agents reported a good summer thanks to the additional stock and vendors excepting the reality that though the buyers were out there they were waiting for prices to be corrected. A large number of sellers took it on the chin, dropped their asking price and sold successfully. Those that did not take agent advice may be looking back wistfully at this summer period wishing they had listened and acted.

Due to the rather grim economic forecast and the government’s radical revisions house prices are falling. Not only are prices falling locally but also in every single region of England and Wales for the first time since early 2009. More properties are still coming on for sale but buyers registering interest is waning. To get a sale in the current market takes a great deal of skilled negotiation.

There is however good news for those owners who would like to sell but are not pressured to do so. Whilst sales values have fallen rental values have been on the increase. Not only is the return better but average void periods for rental property has fallen from 3.6 to 3.2 weeks. Shorter average voids are encouraging news indeed as most landlords will agree that void periods are there single biggest concern.

My advice to those vendors looking to hold of from selling in a bear market is contact a local professional lettings agent such as Harwards. We can discuss the possibility of temporarily renting your property. There is also a returning stream of property investors cautiously re-entering the buy-to-let market and we could even be able to arrange a sale later on to one of these landlords. Contact us to discuss your options or to arrange a completely free no obligation valuation.