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Housing market boost before 2011 VAT hike.

A PROPERTY expert is expecting a flurry of activity as house buyers try to beat the VAT hike.

Nick Button, of Button Legal, in Warwick Road, Coventry, said he was expecting a surge in the number of people who are in the process of buying to try and complete their house moves before VAT rises to 20 per cent from January 4. "With this VAT rise coming up next month we are bound to see purchasers who want to complete as quickly as possible to save some money," he said.

"We always tend to get a flurry of activity before Christmas which seems to be the catalyst for getting things done. Given the imminent VAT rise and some reports suggesting it is taking 10 weeks for the average home to sell, I suspect this flurry will become more like a blizzard among purchasers already involved in the process of buying of a property."

Mr Button did however add that despite this surge in activity, the property market in Coventry and Warwickshire generally still reflected the national picture which last month saw the number of new mortgages being approved fall for the sixth month in a row.

He added: "While I am expecting and welcome this surge of activity from people already involved in the purchase of properties, there's no escaping the fact that the market is generally slow.

"It's been suggested that house sales will stagnate over the coming months which is a concern. I've said for some time now that the key to help kick-start the market is to encourage the banks to start lending again."
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Title Annotation:Business
Publication:Coventry Evening Telegraph (England)
Date:Dec 9, 2010
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