A new poll by Reuters found that the surge in British house prices will come to an end next year as the cost of living crisis and rising borrowing costs put the brakes on what has been a buoyant market.
With inflation running at a 40-year high of over 10% and with energy bills set to rise 80% from October many households are really feeling the pinch.
This has already begun to impact the property sector. Homebuyers and property investors have begun to think twice abut their next purchase, with concerns about the Bank of England, which has already raised interest rates to 1.75% from a pandemic-era low of 0.10% continuing to increase rates.
What our clients are doing to protect their investments?
Securing competitive rates:
We are actively working with our clients, reviewing their investment and personal mortgages and providing them with access to competitive, long term fixed rates. If your mortgage deal is expiring in the next six months, now is the ideal time to look at whether remortgaging and fixing your mortgage costs could save you money.
Protection via Insurance:
It seems inevitable that we will experience a recession soon. This period is likely to present us with many challenges. We are working with our clients to ensure their insurance protection is comprehensive, focusing on loss of rent, tenant default and critical illness cover.
If you would like to discuss options available to you, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.
Most agents bracing for landlords exit
The majority of agents surveyed by Goodlord (67%) say they expect more landlords to exit the private rented sector (PRS) this year.
This is in addition to the 28% of the 2,600 agents, landlords and tenants asked by the firm who say that more than 10% of the landlords on their books have already left the sector in the past year.
A total of 35% of agents asked say the cost of living crisis will have a “major and negative” impact – including a rise in rent arrears.
New build properties selling for significantly below asking price
Buyers of new build homes are currently negotiating a typical discount of around 14 per cent from the asking price, new analysis from Unlatch has suggested.
Certain regions are seeing even more substantial asking price discounts. In London for example, new homes come to the market with an average asking price of £712,503 but are selling for £567,526 ‒ a 20 per cent drop.