House predictions for 2010

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Friday, 18 December 2009 12:36

Previous years have not been easy on the housing market so we are looking forward to some changes in 2010.  Lots of factors will be affecting the local market some good and some not so good.  Halifax latest house price index has again increased, although we are still a long way off the height of the market.  At Percy Williams we would like a stable market which has a consistent but small increase in line with wages and inflation.  This makes houses affordable and sales consistent, and allows the industry to plan ahead with some confidence.   Unfortunately the boom and bust cycle is well and truly entrenched in our economic system; housing is a primary cost and inevitably is seen as a primary economic lever.

In Cornwall the recent controversial Government plans to scrap tax help for owners of furnished holiday flats and houses could affect about 60,000 properties.  This may see a number of these houses coming onto the market, either for sale or as residential lettings.  The upside of this may be a positive impact on the local communities; the nature of many of these have changed because of the lack of permanent residents, many shops have shut as they have been unsustainable all year round, it would be great to turn the clock back and to begin to regain some of these vibrant communities.


Presently the lack of houses on the market and demand is keeping estate agents and ourselves busy.  There is a generally confident feeling for 2010 and we believe the market will remain buoyant. Housing construction starts are unlikely to rise for the time being, as they inevitably lag behind demand because of the inflexibility of the industry, so supply of new housing will remain low, and this is likely to force prices up sharply as soon as demand does rise.  We will wait and see with interest how the general election will affect us especially plans for paying off the national debt and banks ability to keep lending for that all important morgage.

We would also like to wish everyone a very Merry Christmas and New Year and look forward to showing some of you our variety of houses for sale

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