Beresfords view on the current status of the property market

By Mel Cindil - 03 October 2022

While there has been negative news relating to the pound and the wider economy, this has not translated to the housing market and there are no signs that the market will crash. Our current projections are however showing that the rate in which property price increases will be more subdued over the next 6-12 months.

Appetite from buyers remains strong and the demand to buy properties is still there. In August and through September we saw an increase in new properties coming to the market across the network compared to the previous year. This coupled with an increase in the number of buyers registering with us in comparison to last year demonstrates the recent events, as of yet at least, have not diminished the desire to remain active in the property market.

The recent mini budget announcement has led several lenders to pull certain mortgage products. The reality is that this will be a pause in the market and is likely to last until the Government and the Bank of England solidify their position. Lenders are keen to be active, however they need to ensure they are protecting their own position against any further changes from the Government of Bank of England.

Over the past 12 months, we have also seen a continued and steady increase in the time that it takes for a property to complete, which is now on average above five months. This coupled with the economic effects from the mini budget announcement has created a pinch point for many people already underway in the buying process. Most mortgage offers have a 6-month term before they are potentially impacted by the increase in base rate cost of borrowing, potentially resulting in the buyer being unable to afford and proceed with their current purchase and having to either renegotiate or pull out of the chain.

The good news is that the recent stamp duty announcement has put first time buyers in a favourable position. Over 90% of properties in the UK are now exempt for first time buyers, and lenders are still offering good deals for those purchasing a house for the first time.

Buyers should always seek professional advice from a reputable mortgage provider when thinking of moving. Those needing a mortgage now are walking into a market where they understand the climate and any decisions made at this point are based on borrowing that purchasers know that they can afford, thus the market will continue to move forward.