Are Conveyancing Quotes likely to fall with the predicted dip in property ownership?
The publication of a report from the National Federation of House Builders indicates that the number of home-owners in the country is steadily declining. Fewer hopeful first-time buyers are able to afford to buy, and mortgages remain difficult to acquire. In addition, Solicitors across the country confirm that Conveyancing work has declined, as many sellers still face difficulties in finding buyers.
With competition increasing between firms offering Conveyancing Quotes, will that mean a better deal for buyers and sellers?
The report, commissioned from Oxford Economics, makes the following forecasts:
the proportion of people living in owner occupied homes will fall from a peak of 72. 5% in 2001 to 63. 8% in 2021.
- in London, the majority of people living in the capital will rent by 2021 with the number of owner occupiers falling from 51. 6% in 2010 to 44% by 2021.
- average house price in England will meanwhile rise by 21. 3% over the next five years from £214, 647 in 2011, to £260, 304 in 2016
In the opinion of the Federation, the housing market will be plunged into an unprecedented crisis with steep rises in the private rental sector and a house price boom. The Federation blamed the bleak outlook on a chronic under-supply of new homes. In 2010/11 just 105, 000 homes were built in England, the lowest level since the 1920s.
While Conveyancing Quotes and fees may fall in the short term, as property lawyers fight for their share of a shrinking market, once providers have adjusted to this predicted lower volume of transactions, average Conveyancing Quotes will likely increase back up to current levels.
Federation chief executive David Orr said:
“With home ownership in decline, rents rising rapidly and social housing waiting lists at a record high, it's time to face up to the fact that we have a totally dysfunctional housing market. Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy. ”
First-time buyers are seen as a key part to the recovery of the housing market, and the flow of new buyers has had a major impact on house prices and activity which is unlikely to improve in the medium-term.
Difficulties for first-time buyers
Most lenders now require prospective borrowers to be able to find significant deposits, as they have reduced their 'lending to value' ratios, i.e. the amount they are prepared to lend based on the valuation.
Cases are now coming to light where valuers negligently overvalued properties at the height of the lending boom, and now, no doubt in the light of these concerns, many valuations are now coming in at much less than the asking price. Unless vendors are prepared to reduce their expectations, new purchasers are now having to be able to find a higher proportion from their own funds.
Of course, for those who already own their home that is less of a problem, although it can make it harder to “trade up”. Even so, if the supply of purchasers at the bottom end of the chain dries up, this must have an effect on the market as a whole.
There has certainly been a trend in Conveyancing for finance to be obtained from other sources. Loans or gifts from parents or other relatives have become more widespread.
It remains to be seen whether the markets will find other ways to provide finance, but in the current economic climate that does not look very hopeful. Those wishing to get a foot on the ladder may face the dual problem of having to pay out more in rent, while trying to save funds for ever larger deposits.
On the bright side, it appears that, for the time being at least, Cheap Conveyancing Quotes are available to home buyers and sellers who have done their research online.