These are depressing times for we estate agents; sales volumes are a fraction of what we are used to and prices are bumping along the bottom. The only reason house prices aren’t in free fall, we are told, is there aren’t enough houses to go round. So the proposed change in planning laws to “assumed consent,” which could lead to 300,000 new homes being built over the next few years, should send shivers down my spine. Oddly though, I’m not that worried. Here’s why:
Firstly, the new planning proposals are not yet a done deal; they may be watered down considerably before they pass into law. Secondly, it will take time for house-builders to acquire more plots of land and then secure the required planning permission. Taking into account how long it actually takes to build a housing development it could well be 2 or 3 years before the first properties come onto the market; hopefully the economy will be in much better shape by then.
Finally, a lot of people tell me that they’re not considering putting their house on the market because they actually want to upsize and there’s nothing suitable on the market at the moment, or they’re waiting to see if prices are going to fall a bit which will make their next house a bit cheaper, or they’re so worried about the economy that they don’t want to risk taking on a bigger mortgage.
I believe that by the time these new houses come onto the market your average buyer will have more money in their pocket, will be more confident about the future and will find it considerably easier to get a mortgage. Many of the buyers of the new houses will have their old houses to sell which will increase sales volumes. All these things actually point to higher prices and we estate agents will be happy again; more sales equals more fees for us to earn.
Estate Agent
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