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Welcome back to the monthly ZOOM UK Property Market Summary. The current market continues to be a challenging one for all parties involved. In this month's blog, we’ll be looking at key takeaways from the month of October and what we can expect from the upcoming months as we approach the end of 2022.
Sales Slowing Down
One thing that is apparent in the current market is how property sales are slowing down. There are many reasons as to why this is happening. As well documented by mainstream media, the rise in interest rates has simply made mortgages much more expensive for buyers and with news spreading of the potential for house prices to come down, a lot of buyers are now sitting back and waiting to see what happens.
There is also an issue with sales currently progressing, we are still seeing sales take on average 3-4 months to get from offer agreed to completion. As mortgage offers could be expiring during this timeframe, some buyers are having to withdraw from their purchase due to their new mortgage offer in some cases being hundreds of pounds more a month, this is putting pressure on chains to complete quickly to avoid these situations.
We are also noticing for the first time in a while that more properties are starting to come to market. For the first time in a long time, the amount of available properties on the market has been at a high, as more properties enter the market and less active buyers are looking. This has quite quickly become a buyers market and sellers will have to be open to listing their property more competitively in price to attract interest.
Landlords & Tenants - Feeling the Interest Rate Pinch
What does this mean? Unfortunately, high interest rates could force some landlords to sell their property as it’s no longer sustainable to rent. The alternative many are turning to is increasing rent rates. With the changes in tax for Landlords who can no longer offset their mortgage against their income, the sudden jump in interest rates will significantly impact the amount of income they receive from their rental properties.
However it does seem that tenants are open to paying higher rents as this may be the first time in a while that paying rent is cheaper than paying a mortgage. So we expect to still see a good demand from tenants.
As evident, the property market continues to be an unsteady, ever changing and difficult one to navigate. There are many factors impacting and influencing the decisions that many take surrounding buying, selling, renting or letting. As always, the Zoom team are here to help. If you have any questions please feel free to get in touch:
T: 0333 358 3095 Lines answered 8-6 Mon to Fri,9-5 Sat, Calls monitored on Sun
E: sales@zoomestateagents.co.uk
E: lettings@zoomestateagents.co.uk
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