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How big will the bounceback be?

10th November 2008 | back to article listings BACK    print this article PRINT

At the current moment in time, the prospects for the property market may seem as sizzling as a washed-out barbecue. Sooner or later, one may assume, it will be drier and the fires will be lit, but in the meantime the property sector appears to be a damp squib.

Yet is this really the case? Two questions may be fairly asked of the market. Neither of them includes the word if; nobody seriously expects the entire market to crumble, as if the entire economy was about to disappear or people not to need homes to live in anymore. The questions are when it will happen and how strong it will be?

The when may be nearer than some think, following the base rate cut last week and the decision of several major mortgage lenders to pass it on in full. But the provision of better mortgage availability is only half the story. The other part will be the arrival of a greater level of confidence.

However, some recent research has indicated that the positive sentiment needed is already arising. It comes from a group that has been identified as one of the perennial strugglers in the market, first-time buyers.

This news came from a recent survey by conveyancing firm OneSearchDirect. It found that most first-time buyers are still upbeat, with 88 per cent expecting the market to be on the up again within a year and 70 per cent currently saving for a deposit.

Analysing this, managing director of the firm Ronnie Park said: "Over the past six months, confidence has all but disappeared from the property market and this shows a glimmer of hope for the industry. First-time buyers have long been a key pillar in the success of the housing industry and seeing some positive feedback from this demographic can only be seen as a good sign."

So if even the much-maligned first-time buyer has cause for hope, then maybe investors should as well.

Indeed, for some the property market is always a matter of either the seller or the buyer having the upper hand. David Amstell of virtual estate agent Briffy.com stated that right now the buyers are in the box seat.

However, he suggested, this will change in time: "When everything settles down, prices will go up again and then the market will turn round to something else."

So there we are: back to the when and not the if. The answer to this question may or may not be that given by the OneSearchDirect survey respondents. On the other hand, the question of how strong appears to be "very", according to the presenter of TV property show Relocation, relocation Phil Spencer.

He predicted: "Once we have seen the bottom of the market and we have money and we all feel more confident about it, there will be a hell of a bounce at the end of this."

So while now may see plenty sheltering from the storm, it seems there is widespread confidence that the property market will soon see a day again when the sun shines and everything is sizzling.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4474.html. Alternatively, please see our full press release archive.

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