Friday 29 January 2010

Coast & Country hunt for the CASH



With homebuyers back in the market and keen to buy, we at Coast and Country have taken the opportunity to carry out a review of the money market: the idea being to get a clear view of where the cash to fund purchases is coming from. We hope that the following information proves useful to those who are currently looking to buy or sell.


In 2007 mortgage lenders lent in excess of £350bn. By 2009 this huge figure had dropped by over 55%. It is obvious that this change in loan funds available has affected the property market. Prices dropped and the number of transactions plummeted: only established and efficient estate agencies were able to maintain sales levels and a number of agencies and lenders withdrew from the market.

Based on research in December 2009, Coast and Country established in more detail why less money was available and the sectors most affected. Buy to let lending has dropped, from £44bn in 2007 to £8bn in 2009, because lenders are only prepared to lend to experienced landlords with larger deposits. Self-certification lending was at a level of £36bn. 2 years ago, whilst non-conforming lending was around £22bn. There are currently no schemes available. The reason for this is the lenders and regulators view that this type of lending was too risky. There are also very few 95% loans available in the market, effecting first time buyers. Additionally a number of lenders including Bank of Ireland, Bradford & Bingley, Mortgage Express, Paragon and others, have withdrawn from new lending altogether. Others such as Northern Rock who lent £29bn. in 2007 drastically reduced lending and last year lent only £3bn.

All in all you would think this represents a petty bleak picture of the market. However things are improving, month by month. In November 2009 mortgage lending was twice that of the previous November. With limited mortgage funds available one might assume that selling your home would be a problem. This is not actually the case if you have the right approach. Although mortgage funds are fewer there is still over £140bn. per year being lent. A tidy sum.

Coast & Country have re aligned business as the market changed seeking quality buyers for their exciting register of property. We have maintained excellent levels of sales by simply hunting down those with access to the cash. That means quality applicants with good financial track records and established finances. As bait for the best buyers we use exceptional marketing and the very best properties, presented in the best possible light. We are able to do this because we know and understand the property market at a local and national level, and advertise and promote our company and properties in a way that really stands out.

Thursday 14 January 2010

Coast and Country Set the Scene for 2010


Pent up demand, fuelled by a financial turmoil in the banking sector and wider economy in the early part of 2009, lead to an increasing level of property sales throughout the autumn. As consumer confidence returned and homebuyers’ perception of their job security increased, demand for quality homes outstripped supply. This has lead to upward pressure on houses prices with some homes changing hands for as much as 10% more than they would have done 12 months previously.

Coast and Country were instructed on substantially more properties than most other agents offices, according to independent internet data. This has meant we can attract considerable numbers of quality buyers and has fuelled our ongoing run of successful sales. We believe that our register of highly desirable homes at realistic asking prices attract the best possible buyers, leading to quicker completions. This, in turn, attracts the vendors with the best properties to use our services, which are underpinned by the extent of our local advertising, Internet presence and national connections.

The partners at Coast and Country expect 2010 to be an interesting and exciting year for the property market, both locally and nationally. We believe that the pent-up demand will continue through the early part of the year. The increasing level of mortgage funding which is becoming available will buoy this up. Mortgage approvals rose in November to over 60,000, twice the number approved in November 2008. We expect this level to slowly increase as an effect of quantitative easing and as more lenders return to the market. We do not, however, expect levels to return to their peak for several years, as many sources of mortgage funding have dried up completely. Later in the year, with an election looming and with further potential tax increases on the cards we feel it is more difficult to be certain how the property market will perform.

Our advice is that now is a good time to make that move. We are certain that the market is currently strong. Buying or selling, there are deals to be done on advantageous terms. We are also offering their best ever marketing package, with four weeks of advertising in the Mid Devon Advertiser guaranteed, just for starters. Enhanced Internet listing. Free HIPS and attractive rates.