BBC Moneybox

New Years day and a pre-recorded MoneyBox with Paul Lewis looks at the year ahead and in particular at the housing market.
Two days before Christmas I went to Norwich in the snow to look at a house that first time buyer Dave was looking at buying. I used tools like the excellent Rightmove Price Comparison Report for the post code which gives details of what else is on the market, what has sold, what rents are being asked and the time properties have been on the market.
The house had gone on the market in June of 2010 at £130k, been reduced to £120k and the owners had moved out. It wasn’t looking ‘loved’ and rents locally suggested a 5% yield at this price. Work would be needed to let it out and Dave thinks he’d want a new kitchen and a new bathroom. All this supported my view that the lack of any offers was because the house was still over priced.
To be honest, the agent who showed us around gave me all the clues I needed as to why the property hadn’t sold. Despite Dave being a cash buyer with an approved mortgage she wasn’t interested in trying to sell, was cross to be kept waiting and I expect would rather have been Christmas shopping!
Comment and analysis back in a warm studio from mortgage-guru Melanie Bien, director at brokers Private Finance and new year ‘Alka-Seltzer’ Justin Urquhart Stewart of Seven Investment Management.