First Time Buyers Rise

I was interested to read a report indicating that the number of first time buyer transactions rose nearly 5% in July to hit the highest figure since the recession.  As readers of previous blogs will know, for a free flowing property market the number of first time buyers needs to be in excess of 40% of all transactions.  It is also very important for all parts of the chain for there to be an appropriate number of first time buyers to ensure that the normal movement of the property market is sustained.  This is a very welcome move and is another important milestone in the improvement of the property market.

I am still advocating a first time buyer incentive scheme backed by the government and I would also welcome the creation of a housing fund, supported by changes in capital gains tax as a further stabiliser protecting the housing market against economic turbulence.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

INTEREST RATES PART 2

Following on my earlier blog regarding interest rates Mark Carnie has advised that interest rates are likely to increase despite the deflationary impact of the Chinese slow down and low oil prices.  He has signalled that early 2016 remains a possible starting point for interest rate increases – perhaps forward guidance from the Governor to avoid immediate action?

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk    

INTEREST RATES – THE CONUNDRUM

Over the last few months, with forward guidance from the Governor of the Bank of England, we have been watching out for a potential interest rate rise. With the recent economic difficulties coming out of China it has been interesting to see that forecasts of a quarter percent rise in quarter 3 and quarter 4 of this year have now changed with most experts expecting the rise sometime in 2016 and some even anticipating quarter 3 or quarter 4 2016. Have recent uncertainties caused the market to slow down? I would advise that certainly not according to my own feelings and experiences. The figure that I am looking at with interest is the amount of properties coming on to the market as we do not seem to be getting as much traction as we would normally have at this time in a recovery. I will keep you advised of stats.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk