Housing Market Moves
25th September 2008
Much has been written and said about the gloom and doom surrounding the housing market, and its understandable (and serious) impact on the conveyancing sector.
However nothing lasts for ever and those of us who have ‘been around a while’ will remember other crises that, whilst serious at the time, have come and gone. Remember the late 1970’s, with high unemployment, soaring inflation far in excess of today’s 3%, and 15% interest rates. At times things looked really bleak - but we are still here!
Times are undeniably hard but things are starting to change with Government and major lenders making positive moves to ‘kick-start’ the housing market.
Despite RICS guarded (and somewhat negative) reaction to the Governments recent raising of lower limit on stamp duty, the move is a valid attempt to get buyers in ‘at the bottom’ and provide a platform that enables current home buyers to move upward.
One could argue that the RICS suggestion of a one-year stamp duty ‘holiday’ would at best provide a short-term boost to the market and do nothing to sustain a longer-term recovery.
Mortgage rescue schemes are also part of the Government measures and RICS is more behind the Government on this one, having been calling for this type of scheme for some time.
Lenders are paying their part and rates on ‘best buy mortgages’ have fallen by an average of 0.5% in the last six weeks (source Mform.co.uk). The same organization reports that biggest reductions are to be found in the two-year fixed rate area where rates 1.6% lower since the start of August.
So, where does this leave the formerly busy conveyancing practice now having to cope with significantly reduced volumes?
Remember what that famous American General George Patton said when asked what soldiers do in peacetime? He said ‘they prepare for war’!
Now is the time for forward thinking conveyancing practices to prepare for ‘war’. When the market returns, as it surely will, it will be more competitive than ever before, the competitors will be leaner and meaner and only the most efficient organizations will thrive, or indeed survive. It is time to invest for the future and to be ready for when the good times return!
Practices should take advantage of the time they have available now to review internal procedures, check staffing profiles (skills as well as levels) and overhaul or replace creaking computer systems.
The future belongs to those that see it coming.
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