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Have a question? Call us on 01625 503 444
This article was published on August 23rd, 2023
The property market is saturated with information, meaning it can sometimes be hard to discern between fact and fiction. Here at Thorneycroft Solicitors, we are committed to providing first-class conveyancing services that safeguard your interests, and it is paramount that we stay up to date with the reality of what’s going on. In this article, we delve into the current state of the property market to help you get a better understanding…
Buying a home is an exciting time and an important milestone in our lives, so it’s no surprise that there was a surge in demand for properties over the past years, encompassing both new builds and existing houses, in the wake of the pandemic. However, the market has seen demand cool recently due to several factors, prompting some buyers to hold off on their plans to enter the market in anticipation of its eventual stability, while others are approaching the property hunt with realigned expectations.
Many factors influence the current state of the property market, and they should be considered when buying a home. These factors include:
Staying up-to-date on the latest news in the market is essential, so you can make more informed decisions about your plans to purchase a property. However, despite these factors, the housing market is demonstrating resilience, as while demand has slowed, it is still outpacing supply, so you don’t want to delay too long in searching for and buying your dream home.
In 2023, UK house prices have exhibited an overall increase, albeit marking the slowest annual price growth in recent years. Consequently, numerous forecasts have emerged suggesting an impending decline in house prices over the next few months. Experts and platforms like Zoopla predict that house prices will fall by 5% by the end of the year and agree that by the end of 2024, house prices will be 10% lower. While the predictions align with the cooling of the UK property market, it does have the potential to allow more buyers to join the housing market.
Nonetheless, mortgage rates are continuing to rise. The Bank of England introduced the 14th consecutive rise since December 2021, reaching the highest rate since 2008 to combat inflation. While mortgage rates are not expected to increase quite as sharply in the coming months, and could help to stabilise the market, this of course still poses a challenge for some. This is because borrowing has become more expensive and limits the loan amount that can be obtained.
However, in correlation with the rise in mortgage rates, house prices are expected to continue to fall. According to Halifax Mortgages, first-time buyers are displaying perseverance in light of the higher mortgage rates, opting to purchase smaller homes to offset the borrowing costs. This is a trend that is likely to continue, helping these buyers to save money on their mortgage payments in their dream homes.
We understand that stepping onto the UK’s property ladder amid the uncertainty within the market can feel overwhelming. However, this could be the perfect time for you to make a purchase, and view the current market uncertainty as an opportunity rather than an obstacle.
The decline in house prices means you have a better chance of securing a good deal on your dream home, especially if you are willing to negotiate. Additionally, the current state of the market has resulted in decreased demand for properties, and this reduced competition could work in your favour. With fewer prospective buyers in the market, you might find yourself in a stronger position to negotiate when the time comes to make an offer, thereby increasing the likelihood of acquiring your dream home. So, if you’re thinking about buying a home, it’s a great idea to get expert advice as you embark on the property hunt.
At Thorneycroft Solicitors, we have a team of specialist conveyancing lawyers who are here to help. We have a wealth of experience and expertise available to support you during the exciting time of buying a property, from conveyancing to searches and Stamp Duty, whether you’re looking to buy a new home or an existing property. We also provide up-to-date information to help make sure that you’re well-informed about the buying and conveyancing process. Take a look at some of our most recent blogs below:
Whether you’re entering the property market for the first time, or you’re an experienced buyer looking for some additional advice and information, our team of conveyancing experts are here to keep you informed and guide you through the process successfully. Get in touch with us today by calling 0330 058 0118 or filling out our simple enquiry form, and we’ll be sure to be in touch.
