Local housing market stays stable says Brian Holt

The Halifax report said that while low pay rises, higher taxes and inflation were all constraining demand from buyers, these factors were offset by low mortgage interest rates - and June saw a national month on month price rise of 1.2 per cent.

Earlsdon-based Brian Holt director Clive James said the latest national housing market trends were reflected across the company’s four offices in Earsldon, Coventry, Leamington and Kenilworth.

“We’re seeing a healthy volume of interest from buyers looking to spend wisely and properties are selling for those pricing their homes sensibly.

“Although mortgages for first-time buyers are still troublesome to obtain those who can get finance are happy to spend and feel secure that their investment is likely to remain stable.

“We do indeed face what the Halifax economists describe as significant headwinds – in terms of threat of job losses, pension changes and uncertainty over the economic climate. But these are countered by low interest rates and an element of security over house prices which have remained pretty solid over the past couple of years despite dire warnings that they would drop dramatically.

“When the recession first struck in July 2007 we experienced almost two years of a very nervous market with the media full of gloom and doom, suggesting that values could drop by up to 30%, which did nothing for confidence and didn’t happen.

“We can happily report that confidence in bricks and mortar is strong and that the principal reason for prices being relatively stable and not rising relates to the policy of lenders.

“The market at the bottom end is sluggish because first time buyers and many first time sellers do not have sufficient deposit or equity to meet the lenders’ criteria, even though they could afford the mortgage payments.

He added: “The effect of this filters through to the middle and upper price ranges and affects the market in general.”