Apparently there’s a shortage of over one million homes in the UK at present which for us poor mortals can only indicate that our houses have genuine value.   If you take the time to plough through the myriad of news, articles and gossip prevalent on the property market and the UK economy; you’ll soon see that there is still certain confusion with regards whether or not to sell at the moment.

We’ve seen house prices rise for the fourth month in a row and everyone is getting excited by this 1.2% increase nationally, but don’t be deceived into selling or remortgaging unless you’re comfortable as we’re not at full market recovery yet.   It’s tempting though as developers are putting up prices on new builds and there’s a level of certainty returning  to the market as mortgage approvals hit an eighteen month high with loans up 77% on last years figures according the British Banking Association.

Enhancing this general mood are regional trends that indicate the time scale of a property on the market has now lessened from an average of 95 days to around 77 days, suggesting that urgency has increased, pushing the balance of power toward new sellers which in turn pushes up the prices.   This feel good factor is further enhanced with the news of the Royal Bank of Scotland, Lloyds and Northern Rock being broken up and sold off to new banks instead of the usual bigger players like HSBC and Barclays, allowing us consumers more competition and therefore more choice of product!

Speculating further we have to ask whether or not the superstores will enter into the fray.  The property pundits are speculating on just how long it will be before they too, offer mortgages and back new builds.  It makes sense given that the trust factor from the consumer to Sainsbury’s, Asda, Tesco and Morrisons is at an all time high and they too are seeking new ways to leverage share of wallet.  After all, the strap line ‘Tesco. Every little helps.” would underpin such an offering beautifully!

All that would indicate that now seems like a good time to be selling and moving on.

Indeed, RightMove say this is a ‘window of opportunity for sellers’ given the upcoming 2010 election and the economic uncertainties facing the next government and home movers.  Savills, however predict house prices falling by nearly 7% in 2010 despite the 3.7% rise this year.  Who do we believe?

We all know that London generally leads the country out of property recession and, to date, the figures support strong demand in the capital with the best locations asking a premium.  Consumer confidence has risen sharply in the latest surveys and prices in areas such as Oxfordshire are steadily rising and not just holding as previously anticipated.  Sellers appear to be back in the driver’s seat according to Octobers figures but this could enter a slow down come pre-election time.

This, coupled with the new FSA reforms on mortgage lending, creates a ‘thin market’ where any change can impact dramatically on the consumer.   People who don’t sell their houses now may withdraw their properties pending the decision on the withdrawal of the temporary stamp duty exemption and VAT increases in January and, who knows if the new government will alter the requirements for HIPS.  Some will say the time is nigh whilst others remain in stasis.

It’s still a gamble but if you’re serious about selling your house, there is a window of opportunity now, just be realistic on pricing to ensure a secure sale prior to the election.