Press Release: 00065

8 April 2008

Go West!

Source: http://www.ukpropertyshop.co.uk

There is no doubt that house prices are beginning to slip and not before time. Now that the banks are no longer overflowing with cheap money, the days of 125% mortgages and even 100% mortgages are becoming a distant memory. If you want a new mortgage now, you will either need to have a reasonable deposit saved up, or have some equity in your existing home.

The problem facing estate agents is that many people wishing to move have little or no spare equity in their home, because their bank has allowed them to take out additional loans based on the supposed increase in property value since taking out their original mortgage. The further prices fall, the less spare equity there is left in the property, until the dreaded 'negative equity' point is reached. What people forget is that moving home requires them to repay the mortgage on their existing property, before taking out a fresh mortgage on their new home. So if the value has fallen, the sale price may not be sufficient to repay the mortgage and you then have stale-mate.

For most other people though, it's usually swings and roundabouts. You might get less for your home than you might have expected last year, but the property you are buying is cheaper anyway, so there is no net loss. When prices at the lower end of the market have fallen to the point where first time buyers can start to get back onto the ladder, things will start moving again. This could mean tough times ahead for some property developers, who will be forced to cut their margins in order to move unsold stock.

If activity levels on the UK Property Shop website are anything to go by, there is still massive interest in buying property. During the last four to six weeks we have seen record numbers of visitors using the National Directory of Estate Agents. This suggests that when the banks and the government have sorted out the so-called 'credit crunch', there is plenty of pent-up demand waiting to be satisfied. In the meantime, there is strong interest in rental properties and letting agents are busier than ever.

The Moving Location Index Counties League Table for March puts Cornwall and Devon firmly in the lead (and Dorset in 4th place) when it comes to looking for a new home. This is not a new phenomenon as the West Country has consistently been a firm favourite because of its location and lifestyle. In addition to having a strong local market, the area also attracts people looking to retire, as well as others looking for a second home, which could either be an investment, holiday home or future retirement home. Demand is always going to outstrip supply in this part of the country.

Moving Location Index (Counties) - March 2008

Rank	County	Points
1	Cornwall	476
2	Devon	363
3	Cumbria	308
4	Dorset	246
5	Angus	185
6	Highland	173
7	Channel Islands	151
8	Sussex	149
9	Lincolnshire	140
10	Lancashire	116
11	Somerset	113
12	Oxfordshire	95
13	Shropshire	95
14	Scottish Islands	92
15	Pembrokeshire	67
16	Wiltshire	64
17	Norfolk	61
18	Scottish Borders	57
19	Ceredigion	56
20	Stirling	56
21	Denbighshire	52
22	Dunbartonshire	52
23	Perth & Kinross	42
24	Argyll & Bute	42
25	Moray	39
26	Warwickshire	36
27	Merthyr Tydfil	30
28	Vale of Glamorgan	27
29	County Tyrone	25
30	Powys	23
31	Isle of Wight	22
32	Ayrshire	21
33	Herefordshire	21
34	Inverclyde	17
35	Worcestershire	16
36	Dumfries & Galloway	16
37	Tyne & Wear	16
38	Cambridgeshire	15
39	Isle of Man	13
40	Staffordshire	12
41	Neath & Port Talbot	5
42	Aberdeenshire	4
43	County Fermanagh	3
44	Monmouthshire	2
45	Carmarthenshire	-5
46	Clackmannanshire	-10
47	Renfrewshire	-13
48	Falkirk	-16
49	Rhondda Cynon Taff	-17
50	Gwynedd	-20

Note for Editors about the Moving Location Index and UK Property Shop

The UK Property Shop Moving Location Index is based on data from a sample of people looking to buy a property and using the website to register their property search requirements with estate agents in each town. From this data a score is calculated according to the number who are considering either moving within the town where they live, or away from their home town and into another town. The Moving Location Index is not a measure of quality, simply an indication of the relative proportion of home buyers wishing to move into or out of a town, which is influenced by many factors.

The UK Property Shop website www.ukpropertyshop.co.uk was launched in 1999 and is a popular source of information for people looking to buy, sell, rent or let residential property in the UK. It also publishes the National Directory of Estate Agents, the most complete and up to date register of all UK estate agents and letting agents.