www.mortgagestrategy.co.uk SPOTLIGHT
60 seconds
WITH.....
ALAN CLEARY
MANAGING DIRECTOR
EXACT
WHAT IS EXACT?
Exact is a one-stop shop for anybody who wants to have
anything to do with mortgages, whether it’s due
diligence, servicing or origination.
YOUR LATEST SURVEY POINTS TO 9% FALL IN HOUSE PRICES
BUT EVEN CAPITAL ECONOMICS IS NOW TALKING ABOUT A
RISE. CAN YOU EXPLAIN THIS?
Capital Economics has got it wrong for the past 15 years
so I wouldn’t take its predictions to heart. As a result of
our research we believe there will be a peak to trough fall
in house prices of 37%. Another million people will lose
their jobs this year and our survey simply mirrors that
fact.
WHAT SHAPE DO YOU THINK THIS RECESSION IS?
Our view is that it’s an L-shape, but the bottom of the L is
going to feature plenty of smaller ups and downs. If we
are at the bottom of the L now we are bumping along a
cobbled road.
We’re not convinced that everything we are seeing at
the moment is truly representative of the state of the
housing sector. For instance, there are a lot of forced
sales that could be distorting the market.
WILL CONSUMERS BE ABLE TO STAY IN THEIR HOMES?
That will be the big question next year, if not before. And
the answer will be down to the party in power.
The next government will have to look at whether it is
sustainable to keep consumers in their homes. Obviously
it is in owners’ best interests to remain in their homes but
if they are made redundant and can’t get another job, will
they be able to afford to?
ARE THERE ANY GREEN SHOOTS?
There are green shoots but they
have no roots. If lenders are
not lending the property
market can’t come back – if
you can’t get a mortgage you
can’t buy a house.
I can’t see any bank at the
moment that is doing any
lending that could be classed as
innovative.
Unfortunately, we are
now in a loan to guess
rather than a loan to
value market and it will
remain that way for
some time.
This is bound to
prohibit lenders from
getting sexy with
products any time
soon.
● INTERVIEW BY ROBYN HALL
Property
SPOTLIGHT
A round-up of house price activity across the UK
THIS WEEK: Liverpool
THE AREA
Liverpool is a city in the borough of
Merseyside in the north-west of England.
It was granted city status in 1880 and has
a population of 435,500.
The urbanisation and expansion of
Liverpool were broadly brought about by
the city’s status as a major port.
Inhabitants of Liverpool are referred
to as Liverpudlians but are also often
known as Scousers in reference to the
local dish known as scouse – a form of
stew. The word scouse has also become
synonymous with the Liverpool accent
and dialect.
Liverpool’s status as a port has
contributed to its diverse population
which includes a wide range of peoples,
cultures, and religions – particularly
from Ireland.
The popularity of The Beatles and the
other pop groups of the Merseybeat era
contributes to Liverpool’s status as a
tourist destination, and tourism forms a
significant part of the city’s modern
economy. The city is also famed for its
football history, and has two prominent
Premiership clubs.
Liverpool is beginning to recover
from its long post-war decline. Between
1998 and 2002 the rate of job growth was
9.2% compared with a national average
of 4.9%.
In 2004, an area of the city was
granted World Heritage Site status by
UNESCO. Referred to as Liverpool
Maritime Mercantile City the site
comprises six locations including Pier
Head, Albert Dock and William Brown
Street. It features many of Liverpool’s
most famous landmarks.
In 2007 the city celebrated its 800th
anniversary, and in 2008 it held the
European Capital of Culture title
together with Stavanger, Norway.
Source: Wikipedia
HOUSE PRICES
The average cost of a property in
Liverpool in Q9 2009 was £129,291. A
detached property would set you back
£244,498 while you could pick up a
semi-detached house for £147,355. The
average price of a terraced property was
£90,374 and that of a flat, £148,609.
These prices represent a 6.1%
increase in the past quarter and a 2.5%
decrease in the past year.
Source: Land Registry
Up to £175,000
5 ADDISON CLOSE £174,995
Four-bedroom detached house,
lounge, dining room, garage, gardens
to front and rear
£175,000-£250,000
2A WHITEFIELD CLOSE £249,950
Four-bedroom detached house, study,
utility room, conservatory, gardens to
front and rear
Over £250,000
HOGGS HILL LANE £329,950
Four-bedroom detached house,
Grade II listed, three reception rooms,
outbuilding and off-road parking
HALIFAX ESTATE AGENTS
Address: 18 Chapel Lane, Formby L37 4DU
Telephone: 01704 8785450
Email: HEAFormby@halifax.co.uk
MORTGAGE STRATEGY June 1, 2009 31
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