In the BBC series, The Apprentice, Lord Sugar mocked that he didn’t want a “Cautious Carol”. For many, the property market of 2010 was the year of the Cautious Carol.
The election, the long awaited “emergency budget” and concerns about job security all took their toll on Carol’s nerves. Could Carol be a little happier this year?
At Oak Tree Mortgages, we think that 2011 will be a very important year for the economy and the property market. We believe that Cautious Carol has had her day.
With thousands having delayed their house move last year, estate agents are reporting a huge up turn in enquiries.
The National Association of Estate Agents report that out of 700 agencies surveyed, almost two thirds said that the number of house hunters registering in the first two weeks of January was much higher than they would expect for this time of year.
On the supply side, Rightmove reports the number of new sellers is at a two year low.
This mismatch between higher demand and lower supply will, in our opinion, support house prices over the coming months. Within a relatively affluent borough, we believe the fundamentals of the local economy will help support a stable local housing market.
The cost of renting a property continued to rise last year. In some cases, the cost of home ownership compared to renting has almost been equalised. There is still a perception that rent is “dead money”.
Have you noticed how the price of food and petrol has increased over recent months? Inflation currently stands at 3.7%, above the governments target. Higher inflation may be a cost the Bank of England is willing to accept in the short term to support the recovery.
As and when interest rates are increased in Europe, the bank will, we believe, have no choice but to raise the base rate to protect the pound and to prevent further inflation due to the rising cost of imports caused by a weak currency.
If Carol wants to secure a relatively low interest rate on her mortgage, now is the time to do so. The expectation of higher interest rates will soon begin to filter through to higher mortgage rates.
So, Carol, if you have been waiting and waiting for the right time to move, 2011 really could be your year!
If you or Carol would like some advice about your mortgage options, talk to Oak Tree Mortgages.
Call us today on 0121 733 8833
Your home may be repossessed if you do not keep up repayments on your mortgage
Oak Tree Mortgages are authorised and regulated by the Financial Services Authority
