2008 Market Predictions

Well it’s New Year again, so it is time we look ahead and try to predict what will happen in the property market over the coming year!

Below are my personal predictions!

• There will be two, possibly three, further quarter point cuts in the base rate during the first half of 2008. They will then stay at around 4.5% for the remainder of the year.

• Prices will continue to soften during the first half of the year at which point bargain hunters, spurred on by lower interest rates, will help to stabilise the summer market. Prices will then remain flat for the rest of the year. Total price falls should be restricted to about 5% on average in Berkshire with the smaller properties, in particular flats taking the brunt.
  

• Banks will continue to tighten their lending criteria in reaction to the credit crunch making it even harder for first time buyers to enter the market. This will also lead to a significant slowdown in the buy-to-let market.

• Rents will increase significantly as a result of the additional demand (from those that can’t get a mortgage) and reduced supply.

• The introduction of Energy Performance Certificates for rental properties in October will take most buy-to-let Landlords by surprise (just like the Tenancy Deposit Scheme did) leading to a last minute panic to avoid penalties. We’ll do our best to remind you regularly!

• Here at PhD we will continue to provide our clients with an unrivalled service & achieve many sales!!!
  

A happy and prosperous New Year from all at Prospect PhD!

Berkshire Estate Agents Covering Wokingham, Crowthorne, Winnersh, Reading, Warfield, Binfield, Bracknell, Ascot & surrounding areas.