Property News

Confidence and market on the up - buyers urged to act

By Amanda Woodard
February 05, 2010

Estate agents in Wokingham and Bracknell say job confidence is bringing people back into the property market.

They say things are looking good for the next few months and are urging people not to hesitate in case they miss out on a bargain.

Their comments come as the Government revealed the country is finally out of the recession, with GDP in the last quarter growing by 0.1 per cent.

They also coincide with a survey published in January which revealed the Reading area has all the right ingredients to lead Britain out of recession.

The area was singled out as one of five places with the ideal characteristics to spearhead the economic recovery.

Think tank Centre for Cities said the area has the third highest average weekly earnings of any UK town or city and the fifth most skilled workforce.

Its 2010 Outlook Report also pinpointed the area’s strong private sector, high level of entrepreneurship and large number of “knowledge intensive jobs”.

The town joins Brighton, Cambridge, Edinburgh and Milton Keynes in the “five to watch” list.

Peter Coles, managing director for residential property at Romans, said: “The UK’s economy is now emerging from the recession, with many major businesses reporting strong sales figures.

“Consumer confidence is clearly returning.

“Although the ‘boom and bust’ years are firmly behind us, house prices have recovered steadily in the last 12 months, and all reliable indicators point to this trend continuing in 2010 and 2011.”

House prices have recovered steadily in the last 12 months and indicators point to this continuing in 2010 and 2011
Peter Coles, MD Romans Estate Agents

He said waiting for that ‘magic moment’ to buy a home could put buyers at a disadvantage.

“If buyers hesitate for too long, they risk missing out on the best choice in their price range,” he said.

“With this growth further fuelled by low interest rates, increased lending and innovative mortgage deals, a buyer’s hesitation could push their desired property out of reach.”

Neal Mackenzie at Michael Hardy said he thought prices would remain stable for a little while.

He said: “People seem to feel secure in their jobs, so that will have a positive effect.

“In this area there are probably going to be more jobs created with Waitrose extending their storage area in Bracknell.

“Within Wokingham, people seem to be quite positive.

“If people feel secure they will buy. If they don’t, they won’t.

“That’s why 2008 was catastrophic and 2009 was better.”

He added: “We think a lot of people in this area are waiting to see which way the election goes. And maybe if the Tories get in we will see a lot more optimism about how things will pan out.

“If we get a hung or a minority Labour Government that might make people in this area a bit more pessimistic.”

If the Conservatives do win the election, they have pledged to get rid of HIPs.

Mr Mackenzie said: “There has to be a 100-day consultation period before they can scrap them, so it will be at least four months, so if you are waiting for that, you will be waiting a long time.”

He added: “From our point of view, we are used to them. They are completely useless but we are used to having to do them.

“But people are deterred because of the up-front cost.

“In the past, you didn’t pay anything unless you sold your house.

“But now, you have got to come up with this money before anything happens so that is a deterrent.”

Shaun Stevens, manager of Prospect in Wokingham, said: “I think the last three months of last year were very, very positive.

“House prices have increased substantially over the last eight to 10 months on the back of the economy moving forward.

“I think things will continue in the same vein for the next six to 12 months. It is a lot more positive than this time last year.

“We are expecting a good year, as long as people have the confidence to put their house on the market.”

He added: “People may be unaware that their house may be worth more than they think.

“This area has not been hit anywhere near as hard as the rest of the country.

“Some of the houses we are selling are getting close to what they may have achieved in the peak – they may be back to those sort of prices. It is worth getting an up-to-date valuation.”

David Auger at Martin & Pole said the report proved what he was already seeing.

“This report is not just speculation, the evidence backs it up.

“This raises the profile of Reading and the surrounding areas. If it is right, it is very encouraging, and people should want to be part of the success story.”

He added: “We have been reasonably buoyant over the last six months or so.

“Really it should encourage that to continue, it is the confidence that can kill or cure.”

He added: “Commercially there are a reasonable number of deals being done, for offices, shops and warehouses.

“There are people looking to expand.

“The signs are there and have been there for six months.”

Andy Freegard, manager of Carsons in Bracknell, said: “It is a really hard market to call at the moment, I think it is too early to tell.

“The snowfall didn’t help get January off to such a good start, but we are now seeing people wanting to view and buy properties.

“We are getting calls from Slough and Maidenhead, people wanting to move to Bracknell.

“In the middle of last year people were not sure about their jobs, but that worry disappeared around the end of September.

“There is no shortage of buyers registering, demand is still high.”

Start your search for property in Wokingham and Bracknell at www.getthehome.co.uk

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