With all the international news from the Iraq, Iran and now LA dominating the news anyone would think the economic crisis was over. One man who knows it definitely is not is Mervyn King.
Stepping into the spotlight, The Governor of the Bank of England has put on record his belief that the Government’s borrowing will result in spending cuts and tax rises after the next election. He referred to the scale of deficit as extraordinary.
It just remains to see who forms the next Government and how draconian their actions will be.
If, as predicted, the Conservatives win and Labour lose so many seats that they cannot form an effective opposition, the Tories could do anything they want, safe in the knowledge that they can blame their actions on the failings of the previous Government.
If Labour do survive they will still have to take painful action to control public spending over the next few years but will at least try to put a positive spin on it.
The Government’s main housing initiative, the extremely powerful Homes and Communities Agency (HCA), is busy with fresh ideas and incentives, as is the new housing minister.
It is commendable that the HCA has brought forward its spending to help out now. It is always a wise action to spend your budget today if you think it might be taken away tomorrow.
However, we will have to wait to see if any of the incentives provide the silver bullet needed to support an industry that is living from day to day.
So is there any good news?
In the dark world of housing two things are sure.
The first is that people will always need a roof over their head.
How and who provides that roof is still up for debate with councils now also joining the list of potential housing providers. And why not? They used to do it quite well.
On the sales front there are still properties being sold. The National Association of Estate Agents figures, allbeit for April, were very promising.
However, in reality, property is being bought if priced competitively and located where people want to live. Existing or new homes located in less attractive areas will be the last properties to experience any housing market recovery.
Now is the time for the homebuilding marketeer to spot future opportunities, make their budget spend more effective and catch the few buyers still out there.
Let’s face it; the old way of marketing and selling homes is dead. Long live the new era of the digital customer and Internet savvy marketeer.
Broadband Britain is not here yet but it’s getting closer. Who doesn’t know someone who owns an iPhone and surfs the web whilst sitting in the pub?
The economy, and by association all of us, is in for a choppy couple of years.
It will be those who realise that the way forward is to embrace new marketing methods and key into the growing digital, instant information mentality that will keep their head above water.
And the second sure thing is that the climate is changing. We are experiencing record heat waves followed by record rainfall. It is all becoming very difficult to ignore.
As a result, people are beginning to really think about what they can do to slow, or cater for, climate change.
Now research is indicating that people are willing to pay for environmentally friendly homes and, even if you do not believe the findings of the recent YouGov poll conducted for the New Homes Marketing Board, it certainly makes interesting reading.
It would appear that folk are becoming more interested in the environmental aspects of their home – albeit only to save money on their utility bills.
The research suggests that green credentials and the latest environmental standards have risen to form part of the top three on homebuyers’ wish lists for a new build home. They are now considered more important than a convenient location and general value for money. The top two, not surprisingly, remain parking and garden space.
And very soon the Government will come up with the official description of a zero carbon home. Then they will tell home builders what they have to build – if not how we are to build it – and the sales and marketing departments will have to work out how to package, market and sell the resulting product in a way that will attract the few viable home buyers still out there.
In a world of uncertainties, another thing that is certain; the next couple of years will definitely be challenging.
More information from david@ferrier-pearce.co.uk
