Slow-down in property boom (From Free Press Series)

Slow-down in property boom

HOUSE prices in Torfaen have rocketed by as much as much as fifty percent over the last fifteen years. But local estate agents have warned the market is slowing down and house owners looking to make a quick profit by selling their homes for big money need to be more realistic.

In 1989 a first-time buyer looking to purchase a two-bedroom, mid-terraced house in Abersychan could expect to pay around £39,500. Fast forward 15 years and a similar property would set a buyer back by as much as £94,950.

Low interest rates and more attractive mortgage deals have fueled the property boom, but in the last nine months the Bank of England has done it best to put the brakes on excessive house price rises and looks to be succeeding.

Two of Pontypool's biggest estate agents have revealed their dealership with first time buyers has decreased sharply and that some house owners are having to cut their asking price to get a sale.

Amanda Jones, a partner with Davies and Sons Estate Agents in Commercial Street, said the property market is slowing down.

"People are not getting the asking prices they are looking for, which is always a good gauge to measure the market by. People are still thinking house prices are going up, which is just not the case. My advice to any one selling their home is to be realistic with the price and don't miss the boat," she said.

Sandra Thomas, manager of Darlows in Osbourne Road, agreed. "What we are finding in this area of Torfaen is that the top end of the market has lost all interest. The low end is still selling, but we have lost the first time buying market totally," she said.

With few houses on sale in Torfaen for under £75,000 the plight facing first time buyers is at an all time high. In fact a couple would need to be earning a combined income of over £34,000 to be able to afford a decent sized family home.

It's those kind of unattainable figures that have resulted in only 10 percent of the housing market being made up of first time buyers. "Last year there was houses for sale in the area around the £50,000-£60,000 mark. Now there is nothing below £70,000. That's the problem first time buyers are now facing here.

"Before people were coming from Cardiff and Newport to purchase properties here because Torfaen was the next affordable valley. Now that's gone," said Sandra Thomas of Darlows Pontypool."

Yet despite the consensus being that the market is cooling both estate agents agreed it is unlikely there will be crash in property values like in the early nineties.

House prices 15 years ago made getting on the property ladder a lot more easy than it is now for many first time buyers

1989 - Abersychan - three bedroom detached house £52,500, two bed room mid-terrace house £39,950. Pontnewynydd - three bed modernised house £43,950. Blaenavon - modernised two bedroom house £29,500, fully modernised four bedroom house £49,950. Cwmbran - three bedroom mid-terrace house £53,500. Sebastopol - modern two bedroom mid-terrace house £34, 950.

2004 - Abersychan - three bedroom mid-terraced house £89,950. Pontnewynydd - end terraced three bedroom house £85,950. Blaenavon - mid-terraced three bedroom house £82,950. Cwmbran - three bedroom, mid-terrace £107,950. Sebastopol - three bedroom semi-detached house £94,950.