Moving companies may see lonely days ahead

Posted 2007-10-22

An industry survey indicates that fewer Brits are choosing to move these days.

Data from the Royal Institution of Chartered Surveyors (RICS), has indicated that the majority of the institutes’ members have seen a decrease in new buyer instructions during the fall of 2007. 

The majority of surveyors (51%) reported a decline in buyer instructions; which was the tenth consecutive month that the number of Britons seeking to move had decreased. During this phase of a sluggish Real Estate market, moving companies who depend on robust business, may also see a decline in their bottom lines.

Jeremy Leaf, a RICS spokesperson advised that a recovery in the over-all market is likely, in the coming months ahead and offered, “Although house prices continue to fall [in some areas] the underlying economy remains strong - a major correction in the market seems unlikely,” he added.

Given the current market conditions, now may be the best time for homeowners to take stock in their properties and look at needed home improvements – upgrades, maintenance, repairs, and the like. A secured home loan could easily provide the finances needed to conduct short-term home improvements. 

Luke Herbert, UK public policy manager, welcomed the statements by Chancellor Alistair Darling that properties which have been vacant for two years are to be subject to a lower rate of value added tax (VAT) when being refurbished.

The lower rate could make renovations more affordable for many Britons, with secured home loans a possible means of releasing equity to fund improvements to property.

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