The question that everyone is asking is, what will happen to the housing market in the remainder of 2022 and into 2023?
The property market has been incredibly buoyant for the last couple of years, shored up by the stamp duty holiday and the market being the one of the few industries to thrive despite global lockdowns, ‘Hands, Face, Space’ mantras, and millions of people in the UK working from home. Houses were selling at an incredible rate, and prices reached an all-time high.
However, in the last couple of months, we have noticed that the market has changed slightly. It is becoming increasingly obvious, that we are heading into a cost-of-living crisis, of the kind we haven’t experienced for decades. Unfortunately, it is not going to get any easier in a hurry.
What could this cost-of-living crisis mean for the housing industry? Firstly, the crisis might affect the number of homes being sold. Secondly, borrowing capacity constraints. With the recent Bank of England base rate rises, the cheapest mortgage deals are now four times higher than the historic lows of this time last year. Thirdly, the size of deposit needed and finally, ongoing costs to consider such as, rising energy and utility bills, these could all have an impact.
In fact, it is not all bad news. For buyers, the experts are saying that low-deposit mortgages are still readily available, making it easier for many to get a mortgage*. Whilst for those that are selling, they are not predicting a dramatic fall in house prices in the medium to long term, moreover they don’t predict the prices to fall in 2023, but rather varying market leaders forecast growth, ranging from 1% to 5% in the latter part of this year and next year.
What will also be interesting is to see what our new Prime Minister does to support the property industry. With rumours of a Stamp Duty cut, the property market may yet have an essential boost. We say, watch this space!
This is the perfect time to review your financial future and explore your mortgage options. Our sister company, Town & Country Financial Advisers are here to help, so please get in touch to see what they can offer.
Please feel free to call us to discuss your options, book a valuation or a viewing on any of our available properties. You can reach us on 01271 379314.