2013 looks like being an interesting year
During the last four years we have experienced a very healthy market for interesting and individual properties in this part of Somerset. Nationally the market has been sluggish to say the least.
Two major factors have been difficulties with mortgages and the ready supply of properties to rent.
The market is changing. The CML (Council of Mortgage Lenders) is forecasting a nine per cent increase in lending this year.
The CML analyst added that there is a worsening in the outlook for inflation and this is really significant. Many people have been quite happy renting with no fear of being off the housing ladder and out of the market as property prices were not rising.
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However if inflation really gets going there will be considerable consequences.
Property rentals will rise and there is every possibility that bricks and mortar will be seen as a safe refuge for capital.
In my opinion these factors, linked with an increase of mortgage availability and continuing low rates, will result in house price rises. The first step will be an increase in sale numbers. Interestingly, sales in January this year are six per cent up on January last year.
Is the house market heading for the next "boom stage of the cycle"? There is no certainty in timing the changes but I feel many families currently renting will shortly start to look at the long-term future and will re-enter the market as house buyers.
I think there is every likelihood that in a very short time we will be looking back at the spring market of 2013 and be surprised how low prices were.
This is going to be a very interesting year.