Housing gloom deters investors
THE housing crash is deterring Teessiders from ploughing their cash into property, according to an nebusiness poll.
Almost three in four respondents said they would not invest in property this year, following some of the gloomiest housing data in two decades.
Today the Royal Institution of Charter Surveyors said the number of homes changing hands had fallen to a record low despite increasing buyer interest, while recent figures from the Nationwide showed house prices fell by 15.9% during 2008 - the biggest annual drop on record - although the North-east fared slightly better by recording an 11% slide.
With most experts predicting further house price falls in 2009, the poll results show many Teessiders are seeking safer havens for their cash.
But others believe plunging property values provide good opportunities for savvy investors.
Nathan Robinson, founder of Barclay Elsdon Lettings & Management in Saltburn, said he would “definitely invest” as low interest rates - prompted by a succession of base rate cuts which has brought it to a historic 1.5% - meant lower mortgage repayments.
Meanwhile, Shaun Connolly, manager and director of Darlington-based Beaumont Recruiting, said there was never a better time to invest in property.
He said: “There are bargains to be had. If I had the money I would trade upwards and buy more expensive houses, which have come down in price considerably.”
Mr Connolly said a house price recovery could occur as early as this year and, when it did, would kick-start activity in the ailing construction sector.
“Once the housing market picks up, everybody wants to find plots of land and start building again,” he said.
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