Locks Heath / Western Wards Housing Market

The metrics on the Housing Market are always difficult to

interpret, but on most major indices the average UK house price has started to

slide. Public spending cuts, tighter credit controls, unemployment, wage

freezes, and tax rises are just a few of the long list of causes that would

lead to suggest that house prices will continue to fall. But how quickly and by

how much? - who knows?!

In their report released in August, Jones Lang LaSalle, the

financial and professional services firm, predict that during the remainder of

2010 there will be a decline of 3.9 per cent on current price levels, reducing

the value of the average UK property by £6,500.

“…the housing market is heading for a double dip, with net

mortgage lending pretty much flat and the number of mortgage approvals

remaining very low." Says Andrew Goodwin, senior economic adviser to the

Ernst & Young ITEM Club. (Home.co.uk House Asking Price Index Report

released on 13th September).

You can see what the trend is for Hampshire as a whole on

the Home.co.uk

website. This site also breaks down the asking and final sales prices by area

into Fareham, Southampton and Portsmouth etc, but does not show information for

the Western Wards.

Interestingly, looking at our closest neighbouring town

listed on the site, Fareham, the average asking price for all types of property

has increased over the last year. Figures for average final sale price are only

available for June, but they show that the average final sale prices for all

types of property other than detached houses have actually increased over the

last year, bucking the national trend.

To find out what’s happening more locally you can look at

the FindaProperty website where they have listed final sale prices of

properties on a street-by-street level.

I spoke to Senior Partner of Beal’s in Park Gate. Beal’s now have 12 branches in the area having just opened two new branches,

one in Havant in January and one in Shirley. They invested heavily in the

rental market thirteen years ago and are able to use the recent explosion in

this to support the business.

Darren says prices are coming down. A few months ago he was

selling 2-bed properties for £155K - £160K but at the moment he is struggling

to get viewings on one on the market for £145K. “There doesn’t seem to be an ’Autumn

bounce’ this year,” he said, " I think this is

due to consumer confidence being so low. We normally sell fifty to sixty

properties across our all our branches per month, but we’re operating at about

half that at the moment.”

Edward Gilmore at Walker & Waterer had a few minutes

spare for a quick chat to me between viewings. In his opinion the market has

actually improved on the same time last year. He’s already sold 7 properties so

far this month, which he says is about average, and he’s confident this will become 12

by the end of the month

As an example of what has happened to prices locally over the years, Your Move in Park

Gate has a 2-bed house in Albacore Avenue in Warsash currently for sale at

£171,000. According to the FindaProperty website this house sold in June 2001 for

£93,950, in April 2005 for £152,500, and again in Sept 2006 for £155,500.

SBK have 6 Crableck Lane, Sarisbury Green on their books for

£249.950. In the same road number 4 sold in Oct 2004 for £309,950 and then again in Jan 2008 for

£370,000.

There are 11 different estate agents in this area and all but

three of them (Austin & Wyatt, Hamptons and Mann Countrywide) are independent. Competition between them is high. Enfields have a good offer at the moment - if you sell your house with them they will donate up to £150 to local schools' I.T. departments.

Speaking to Darren, he told me that the internet has changed

agencies greatly in the last 15 years. “Not only are there many more

independents, but there is much less face-to-face work now,” he said, “Most

people now shop online first and choose which properties they want to view from

there.”

One of the most unusual properties for sale in the area has to be

the 2-bed apartment in the Clock Tower in Warsash. This is on the market for

£345,000 with Brook.

What are your buying / selling experiences? What do you think will happen next in the Housing Market?