Q. I’m hearing the words ‘DOUBLE DIP’ being bantered around way too much just lately and wondering how this will affect the property market? After the announcement a couple of weeks ago that the country is officially out of recession I thought the worst was behind us?
A. Yes – I hear you, just when we all started to feel like we can sleep a little easier at night despite the long road ahead to recovery we hear the words double dip being rolled out continuously. There have been a number of gloomy surveys
produced including the latest one from the London Chamber of Commerce and Industry which found that 47% predicted a second economic dip, while 29% expected a return to sustained economic growth. To be completely honest discussing this very topic over the last week with various professionals we all had to admit that we just didn’t see this recession coming which I think is the case across the board, everything seemed so great especially in the property market we all thought that maybe prices would level out slightly as it was obvious they couldn’t keep climbing at the rate they were but no one could have predicted the nose dive we saw into recession and the collapse of the property market virtually overnight. However, I think positive thinking is the way forward and so far this year we have definitely seen stabilization in the property market, and buyers seem ready to commit to purchase in such a realistic and affordable market, its kind of now or never and indeed recently by way of example we had a situation where a desirable riverside property hit the market, a list of awaiting applicants were called and booked in – 6 altogether and the 3rd one to view offered the asking price, something we have not seen in a very long time, need less to say the 3 viewers that had their appointments cancelled were not amused but this kind of activity is definitely what we need to dig ourselves out of the hole it seemed we would never find our way out of. Reports out this week also predicted that a weak job market and low inflation would likely allow the central bank to keep interest rates at very low levels for “an extended period”. This too will also help investors with buy to let mortgages remain stable, as well as make lending more affordable for those first time buyers with a decent deposit to step onto the property ladder. Things in general defiantly seem more upbeat across the board a little buzz has returned as well as a few more smiles and I personally believe it’s up to us to keep it that way instead of dwelling on negativity