Since the doomed mini-budget, and the uncertainty that followed it, there has been lots of news about how government announcements might impact the housing market.
So, because we’re able to see any changes in home-mover behaviour in real time, we’ve taken a closer look to find out what’s changed in the past month. Here’s some thoughts on the current housing market.
Previous Situation
The coronavirus outbreak and subsequent lockdowns seriously impacted the housing market. Because there are many more people wishing to move than there are houses available for purchase, average asking prices continued to rise.
These extraordinarily high levels of demand began to decline throughout 2022. This was in part because more properties entered the market. And more lately, we’ve begun to catch signs of the housing market stabilising and returning to the demand levels we witnessed prior to Covid.
Current Housing Market – Mortgage Rates
Mortgage rates have risen all year long prior to the mini-budget. However, because the tax cuts promised in the mini-budget were unexpected, these rates have been increasing further during the past two weeks. Additionally, unforeseen events in the financial markets are likely to have an immediate effect.
How these cuts might affect the financial situation in the UK has been the subject of numerous rumours. Most experts accept that the Bank of England may need to increase interest rates more quickly than we first thought. The underlying costs of fixed-rate mortgages have been impacted by this. Some lenders have raised their prices as a result.
Current Housing Market – There Are Deals Out There
You can still access mortgages easily as a potential buyer. You must first choose what kind of mortgage to get and how much you can borrow with the aid of a mortgage broker. They will discuss your unique situation in order to help you choose the finest lender. And keep in mind that just because one lender has rejected your application for a mortgage does not necessarily mean that all lenders will do the same.
Any Signs Of A Crash?
It’s possible that consumers will reevaluate whether major purchases they had originally planned to make still make sense for them. This is never truer than during periods of economic turmoil or uncertainty. Therefore, if you’re in a property chain and waiting to move, it’s not a perfect time. You could be anxious about how other chain members’ moving plans are progressing.
However, over the last two weeks, the number of sales that fell through has stayed at a level that is nearly identical to 2019 levels. Furthermore, once a sale has been agreed upon, most people don’t back out.
Are People Selling?
Some have spread numerous rumours regarding house values and potential outcomes. And there was a risk that more people might have decided to postpone their moves in favour of waiting it out.
The number of new properties advertised for sale has actually increased slightly (4%) during the two weeks prior to the mini-budget release. This is good news for people who are moving. It should make it easier for them to find a new home. Additionally, it should also lower the rate at which housing prices are rising.
Asking Prices
Compared to the preceding two weeks, there has been a very slight uptick (1%) in asking price reductions.
There are currently 23% fewer properties for sale with price reductions than there were on average during the five years before to the epidemic, which was 32%.
In a survey of estate agents conducted last week, more than half (54%) stated that new sellers or those who have listed their properties since the mini-budget would now be more open to selling their homes fairly. Or alternatively, would be willing to consider lesser offers.
Setting a competitive price for your home as soon as it hits the market is one of the most crucial things you can do if you’re thinking about selling it to ensure that you find a buyer. As a result, it’s less likely that you’ll eventually need to lower your price. To find out how much nearby homes have sold for, use our sold prices tool.
Asking a neighbourhood estate agent is the best way to obtain an accurate valuation. Here, you can locate nearby estate agents and set up a free property appraisal.
Are People Still Moving?
Absolutely. Some people moving, though, might be pondering whether they’ll need to adjust their budget or whether they should start looking for a home in a more affordable area.
When comparing the two weeks prior to the mini-budget with the two weeks following, there has been no change in the number of sales agreed. Therefore, home moves continue to take place for those who are able to do so. Finding the house in which you want to make a lifetime of memories also requires a longer-term perspective.
