Simon Miller, managing director of Wakefield-based Beaumont Residential, believed the question mark over the introduction of Home Information Packs (HIPs) is likely to have a major impact on how the property market behaves next year.
Miller said: "Although most commentators still feel that interest rates will increase once again during the next twelve months, my view is that the market will be driven more by whether or not HIPs goes ahead, rather than any minor fluctuations in the base rate."
HIPs trials
"With less than six months to go before the government's stated launch date in June 2007, we had hoped to see more effort to educate the public about the implications of HIPs. At the moment, all we are seeing is a series of isolated regional trials, such as that taking place in Huddersfield.
"Although the government will not scrap HIPs, it may conceivably defer its introduction in the short term. Unless they can clarify that HIPs will definitely go ahead as planned in June, I can foresee a two-tier property market during the second quarter of 2007.
"If HIPs were no longer a factor, the property market for 2007 will be much the same as during 2006, with solid growth and ready sales for realistically priced homes.
"But, even though compulsory Home Condition Reports are no longer part of the government's plans, if HIPs becomes mandatory as from the 1 June, there will be a rush to market homes prior to the deadline date, with a relative lull in the market thereafter."
First-time buyers needed
With new lending products now available to tempt first-time buyers back into the market, Miller believed elusive new buyers will once again start to appear. "The centre of Wakefield in particular has suffered recently from a lack of affordable homes for first-time buyers, although outlying areas such as Pontefract, Castleford and Normanton still have good quality, two bedroomed terraced properties for around £90,000. Mortgages such as Morgan Stanley's latest Advantage product can help people get onto the property ladder."
Apartment living
With Wakefield now firmly established as a commuter city for people working in Leeds and even London, apartment living is becoming even more attractive, as homebuyers struggle to achieve that all-important work-life balance. Miller added: "The Wakefield area is more accessible than ever, with fewer traffic problems and more sensible prices than the other regions that lie within reach of Leeds' financial centre.
"As such, while 2006 has seen an increase in the number of apartment builds and conversions, I'm sure that 2007 is set to continue this trend."
