OUR OPINION OF THE MARKET AS AT NOVEMBER 2022
We have recorded a downturn in the market attributed to rises in interest rates and the increased cost of living index, together with increasing inflation which is predicted to increase substantially by the end of 2022 and into 2023. The Bank of England has also confirmed a possible recession and we see the property market turning into a buyer’s market which is reflected in current price adjustments, reductions and further renegotiations, and in some areas there is also more stock coming onto the market.
We consider that the affordability criteria of lenders is restricting the amount that they are granting on a mortgage which will restrict the buying power of many purchasers, and even if they are prepared to pay a high price to secure a house if the mortgage funds are not available then they cannot proceed unless the price is renegotiated accordingly.
We also consider that proposed changes in the EPC rating could force many Landlords to sell their buy to rent flat investments rather than improve them, and again with more stock coming on the market and increased costs to purchasers then again prices would be expected to fall.
THE MARKET AS WE SEE IT AT JUNE 2022
We have noticed that in some locations due to the shortage of stock there have been some price increases, but there are concerns due to the rise in interest rates and the rise in the cost of living index including the Russian conflict that could all affect the property market and we will usually recommend expert valuation advice.
We still have Covid 19 with us but without a lockdown situation, but the risk of a recession with an increase in unemployment could also affect the housing market, and independent valuation advice should be obtained although how the market will react to some economic and political factors are unknown.
We are also not economists but consider that the economic uncertainty and the challenging market environment could reduce demand and prices could fall, as we have recently recorded some purchaser’s resistance in the current climate and seen some adjusted prices due to the likes of repairs.