Location, Location, Location is back on our screens, now followed by a brand new property show on More4: Kirstie and Phil's Property Guide. After the programme, Phil Spencer was online to answer your questions about property issues...
‘My partner and I are keen to sell our flat but not in a massive hurry… Our two bed Victorian conversion has totally been refurbished inside and out to a very modern and contemporary standard. Given the current climate would you advise that we sit tight and wait until the market potentially refreshes? Ideally we would like to move out of London in the next 12 months maximum! Or do we try to sell in the current market and hold out for that magic buyer…meanwhile risking a lower offer on our flat?!’
Mark, Crystal Palace
'I own a small three bedroom terraced house in Bedford, which I am currently renting out, and my partner owns a two bedroom flat in Liphook, Hampshire. We are looking to buy a larger property in the next 12 to 24 months and I don’t know whether to keep renting my property out or sell it now before prices possibly fall further. It looks as though he is already in negative equity on the property in Liphook – will it even be possible for us to afford a larger property in the next year or so, even with selling the two smaller properties?
Christine, Bedford
‘My husband and I bought a two bedroom ex-local authority flat in Islington, London in October 2006 and a recent valuation has suggested an increase of £50,000 to the value of the property. We only really imagined ourselves here for two years before moving on to a period property a little further out. We don't really want to be stuck here for three or more years whilst riding out the market uncertainties, should we sell now,as opposed to in one or two years? As the general consensus is that prices aren't going to go up for while, if anything they will go down, do you think it is therefore better to get on with it? The flat is in great condition and has a lovely garden that we have done lots of work to. The block of flats is small, safe and generally well maintained, however lacks beauty from the outside (which I mind about more than my husband!).
Ellie, London
‘My house is on the market at the moment and I will be relocating to Derbyshire as soon as it is sold. How can I insure I sell it in today’s current climate, I do not want to sell it at too much of a loss?’
Tracie, Hessle, East Yorks
Phil Says...
‘I’ve been asked this question a lot, recently, so if you don’t mind, I’ll answer it generally. Increasing uncertainty continues to weaken confidence and this month we have seen a virtual stand off between buyers and sellers. Buyers have been holding out for further price falls, while sellers have been refusing to budge.
'Everyone seems to know it’s been raining – but just not on them. The net result is a 34 per cent fall in the number of transactions and this is widely predicted to worsen through the summer. Whilst there are currently very few examples of negative equity or forced selling, a complete collapse in transaction levels could lead to a serious impact on the wider economy.
Economically, we are entering a new phase. In recent years, average prices have shot up during a period of low general inflation and consequently we have benefited more than we have even been able to identify. “Real” inflation-adjusted house prices were rising more sharply than we could actually appreciate. Now, the opposite is true; we have declining prices in an environment of rising inflation, which consequently means “real” mainstream house prices are falling more sharply than cash prices.
Notwithstanding this, some people still wish to move or need to sell, which means as far as the national mainstream market is concerned, as the numbers of unsold properties climbs, prices are likely to come down further. I therefore expect things to get worse over the next few months, before - assuming the mortgage market has eased - conditions start to improve. My advice for now, though, is, if you don’t have to sell right now, don’t.’
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