September 2010 Market Comment
Date of Article
Sep 02 2010

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Richard Hatch, head of residential at property consultancy, Carter Jonas, comments on the housing market:
"Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards.

"An increase in the number of properties for sale, specifically at the lower end of the market, is diluting demand and seasonal factors will have added to that downward pressure in recent months.

"October's Spending Review and ongoing uncertainty in the economy are also dampening the enthusiasm of some prospective house buyers.

"Ongoing difficulties securing mortgage finance at higher LTVs are another factor reining prices in.

"At the higher end, however, prices are proving far more resilient and demand continues to be strong, more evidence of the formation of a two-tier market.

"We do not expect two months of consecutive declines to be the beginning of a sharper downward price trend. The market is simply readjusting after getting ahead of itself. The market is stabilising, not collapsing."