Market Review 2010

The local residential property market

20 mile radius of Milton Keynes

* Prices rose in the first half of the year by between 5% and 7% due to low supply and high demand

* Increased supply resulted in house prices being largely unchanged over the whole of 2010

* The election, changes in taxation, concern over the economy and most recently snow have all slowed the market over the year but numerous positive signs including good growth have helped the market

* Agents and vendors have been very inventive in devising chain breaking techniques

* There has been a substantial decline in overall market activity in the last 24 months to about half peak 2007 levels

* Nationally repossessions were around 36,000 in 2010 and are predicted to be slightly lower (RICS) at around 33,000 in 2011

* Mortgage lending has been at its lowest since 2000 and is expected to remain at these levels for 2011 according to the Council for Mortgage Lenders

* Predictions for 2011 are for very modest falls in value. The RICS are suggesting around 2% over the year and Nationwide see “..little evidence to suggest house price declines are likely to accelerate”

* Long term predictions suggest a 12% increase in values over a 5 year period but an increase in the “north/south” divide with prime London prices leading the market by a considerable level

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Written by Michael Hornsby
Date Published: 02.01.11