The latest inflation figures have been released today and they tell us that the rate of price increases is falling.  I do not think anyone is going to be particularly surprised at this as this is the first month where the VAT hike to 20% last year does not affect the figures.

I’m fairly sure the powers that be will put some sort of positive spin on this but as I have said in previous posts prices are still rising just not as much as they were this time last year.  If you then take into account we have the highest unemployment figures for over 15 years and average wage increases over 2011 of around 1.9% then the light at the end of the tunnel seems a very long way off.  Equally I think we can enjoy (assuming you have a mortgage) low interest rates for the foreseeable future.

Little wonder the UK is likely to be downgraded by a credit rating agency, possibly leading to a lack of confidence in the UK market.

I think all these figures will lead to an inevitable sense of caution from homeowners.  Looking on the property portals, in Farnham there have been relatively little movement in the housing market with few properties coming onto the market.  General uncertainty in the economy means that people could well be delaying the big move until the economy has improved.

Those properties that do come onto the market will enjoy an inflated price due to lack of supply, especially South Farnham which is extremely popular.  Did see a bargain in Upper Hale, the “wreck” that can be developed into a great home.  Hope it goes to someone who will lovingly restore it rather than turn it around for a fast buck.

First time buyers have got a few weeks left of their stamp duty holiday, some surveys are showing a surge of first time buyers looking to take advantage before time runs out.  Only applicable up to £250k.

I really want to write some good news but not sure when I am going to get the opportunity!