THE FUTURE IS BRIGHT FOR THE HOUSING MARKET

Prospects for the housing market have improved considerably with the publication of a new economic forecast and the expectation that house prices in parts of Bristol will soar when the main rail line to London is upgraded.
Ernst & Young predicts that the UK economy will rebound in the second half of this year and grow by 1.2 per cent next year, boosted by a housing market revival next spring.
In its Item Club autumn forecast, it says that an improving outlook for consumers and easing credit conditions are paving the way for a housing market recovery. Housing transactions are expected to bottom out this autumn before recovering in spring, with house prices set to follow.
Ernst & Young Item Club chief economic adviser Peter Spencer says: “The latest credit conditions survey shows one of the biggest headwinds facing the UK has now begun to ease – lending has started to loosen up and we are hopeful the housing market is primed for a recovery early next year.”
In the longer term, the cost of buying a house in parts of Bristol, including areas like Totterdown and Bedminster close to Temple Meads station, will leap by up to 20% with the electrification of the rail line between the South West and London.
Adam Offer, managing director of leading South West estate agents Besley Hill, said: “The electrification of the line will take 20 minutes off the journey time between Bristol and London, slashing it to one hour and 20 minutes, so more people will be encouraged to commute between the two cities.
“This will inevitably create increased demand for properties near to Temple Meads and affluent areas in and around Bristol from people working in London who become attracted by the idea of enjoying the lifestyle here and commuting to the office.. As a result, property values will soar.”

MORTGAGE LENDING REACHES TWO-YEAR HIGH

Mortgage lending for homebuyers reached a two-year high in August, according to figures from the Council of Mortgage Lenders (CML). Some 55,300 loans were advanced for house purchase during the month worth £8.4 billion, representing an 11 per cent increase on a year ago and the largest number of loans seen since July 2010, the CML said. Lending to first-time buyers is up by a fifth on a year ago with £2.8 billion worth of loans advanced, only just below the levels seen in March when the ending of a stamp duty concession for this sector prompted a rush of people looking to complete deals. Mortgage availability has been increasing since an £80 billion funding for lending scheme was launched at the start of August, although much of this has so far been concentrated around people with larger deposits of at least 20 per cent. Adam Offer, managing director of leading South West estate agents, Besley Hill, said the CML data was consistent with an upsurge in mortgage applications being handled by Mortgage Advice Bureau (MAB) representatives at Besley Hill’s 15 offices throughout Bristol and Gloucestershire. “There are indications that funding for lending is having a positive effect on the market with several lenders cutting their rates recently,” said Mr Offer.

BRISK BIDDING EXPECTED AT BESLEY HILL AUCTION

Auctioneer Nigel Freston is expecting some competitive bidding at Besley Hill’s property auction at the BAWA Pavilion Lounge, Southmead Road, Filton, on Thursday, October 25. He enjoyed a 100% success rate at their auction last month when all available lots were sold or under offer. Particular interest is likely to be shown in 5 ChurchEnd, Eastington, Stonehouse, near Stroud,pictured, a pretty Grade II listed end-terraced cottage in need of refurbishment. Offered with a guide price of £180,000, the property comprises two reception rooms, kitchen/dining area, two/three bedrooms, study landing area and utility room, together with potential off-road parking space. An impressive three-bedroom period bay-fronted house, 4 Balaclava Road, Fishponds, guide price £125,000-£145,000, has a converted roof space and a large modern garage workshop. Two of the lots, described as ideal investment properties, are purpose built one-bedroom flats with a guide price of £65,000. The first floor 7 Atlas Close, Speedwell, and the ground floor 6 Whiteway Court, St George, both come with allocated parking spaces. Bids will also be invited for two commercial properties: Unit 2B Balaclava Industrial Estate, Balaclava Road, Fishponds, guide price £120,000, a 2,000 sq ft ground floor industrial unit with 1,150 sq ft first floor mezzanine area and three parking spaces, and Gloucester House, Gloucester Street, Avonmouth, guide price £150,000-£175,000, a 3,900 sq ft approx self-contained commercial building and yard with secure boundary, which has potential for refurbishment/redevelopment. For further details view the auction catalogue online at www.besleyhillsurveyit.co.uk or contact the auctioneer’s office at 10 Badminton Road, Downend, Bristol BS16 6BQ, tel 0117 970 1551 , email info@besleyhillsurveyit.co.uk