Property Market Update 🏘️
The housing market has been crazy and fast-paced over the last two years, and it can be hard to keep track of what is happening and whether now is a good time to consider buying a property.
Following the chaotic property market frenzy of the last few years, with people offering way above asking prices and homes being snatched up before they even have time to put a ‘for sale’ sign outside, the government’s mini-budget caused a complete U-turn.
The fast-paced property market is suddenly very slow, with sellers finding it extremely challenging, accepting offers below the asking price and having to reduce properties. According to propertymark.co.uk, 52% of estate agents reported the majority of sales agreed were below the asking price in September.
The mini-budget caused a soar in interest rates and mortgage repayments, meaning people cannot afford to borrow as much because they cannot afford the interest rates. No one wants to buy a property whilst the interest rates are so high, and combine that with the rising costs of living and increased energy bills, it is no surprise that it is becoming harder and harder to sell property. It is not because people do not want to move, according to Zoopla rent prices have increased by at least 10.1% in 102 council areas. People would much rather be paying a mortgage than such high rent but they do not want to face the soaring interest rates in a time of nationwide financial uncertainty.
If you are willing to pay more interest and decide to buy now, you will actually be in the best place you could have been for the past three years. Yes, the interest rates are higher, but with less frenzy it is a much less stressful buying experience, and there is an increase in properties available, so you are more likely to find a property that ticks all of your boxes. Financially, the property perfect for you and your family could even be yours with an offer below the asking price, which was unheard of this time last year.
What are the benefits of buying new builds during these uncertain times?
New build properties are designed to meet the demands of modern living; there will be less unexpected costs, with many older properties needing major works and changes such as replacing all windows and doors, replacing foundations, dealing with dampness and a multitude of other possible issues.
New build properties also reduce the stress of the buying experience further as they have no onward chain. Plus, financially, new builds are greener, which means cheaper bills.
The current state of the property market is all down to the mini statement. With a change of government, this could all be changing very soon. Under our new PM, the Autumn Statement is due on November 17th, possibly the most highly anticipated Autumn Statement of all time. We will have to wait and see how this impacts the property market.
Take a look at the range of Laragh properties currently available here: