By using our site, you agree to our cookie policy.
Your April market update
A snapshot of the property world right now, from April property price updates to buy-to-let news.
Your April market update
Whether you’re in full spring-cleaning chaos prior to moving house, or you’re just coming out of hibernation and you’re starting to wonder whether now is the right time for you to get onto the property ladder— we’re here for you. Here’s a nifty little update on what’s going on in the housing market right now. We know that times have been tough for so many people, so we want to break it down so that you don’t give up on your hopes to be a homeowner, or home-mover. Yes, it looks like the Bank of England will likely announce another interest rate rise during the next announcement in a bid to continue to control inflation, BUT there have been glimmers of sunlight on the horizon (literally and figuratively), meaning energy bills should be on the way down as a result.What else is new in the property world? Well firstly, let’s look at house prices.
House prices
Firstly, let’s have a look at house prices. The media is loving the stat that house prices are plummeting as fast as they did in 2009 (around the financial crash), but what’s the reality?And how might it affect both buyers and sellers? House prices have fallen by 3.1% since last March, according to Nationwide Building Society. In terms of month by month price changes, Nationwide are recording a decline of 0.8% in house prices. While most are saying house prices may continue to fall, it’s not that straightforward, or predictable. Whilst dramatic headlines seem daunting (“house prices FALL as market CRASHES and everything EXPLODES” etc.), it’s worth remembering that Nationwide is comparing house prices between now and last year. 2021 and the first half of 2022 saw a house prices boom as mortgage rates were more affordable, inflation was lower and the market was still enjoying growth following the stamp duty holiday. So we may be seeing a 3.1% fall in house prices, but some think it’s really more of a steady correction back to regular pricing.What do the figures say?
What does that actually mean?
Several factors, namely the mini-budget at the end of 2022, growing inflation meaning people can’t afford to buy (driving down demand and therefore prices), and unaffordable mortgage rates mainly due to high interest rates generally. Generally, sales are remaining steady and stable, according to the professional body for estate agents, Propertymark. You may not be able to test the market with the hiked prices of the last few years, but don’t think you won’t sell if you take your house to market now. Also remember, if you’re selling for slightly less than expected, you’ll also probably be buying for less too. Speaking of which, now could be a good time to get on the property ladder, with property prices at a less pumped-up place. The only thing is, mortgages still remain fairly hard to attain at affordable rates, with lenders still looking for high deposits. Plus, high inflation and the cost of living crisis means we know it’s a hard time to save — so always look at your personal circumstances, and reach out to an expert if you have questions.What is causing price falls?
How does that affect sellers?
And buyers?
You may not be able to test the market with the hiked prices of the last few years, but homes are definitely still selling. "
Onto a more cheery note, there are some areas where property investment is still looking like a great idea.
Figures from Hometrack and Zoopla have revealed which two cities are best for property investment this year. Glasgow and Manchester have been ranked and found as the best 2 places for property investment this year. The cities show healthy property prices (with growth in lots of areas), strong rental yields, lots of investment and regeneration, excellent transport links and, well, they’re just really cool places. The data shows that both cities scored 28/30 when rated as potential places for property investment. Glasgow rated highest for rental yield, annual property value increase and transport links. The growing population in Manchester means demand is growing and prices will continue to rise. Looking to buy as an investment? Whether you’re looking to buy and resell a house, or you fancy letting out a property you own, you know your top two port of calls. Where?
Why Manchester and Glasgow?
So…
Whilst headlines can seem daunting, the reality isn’t that bad. House prices still don’t seem to be “crashing”, it’s just a slightly bumpy road. As usual, check out social media for handy updates, or reach out to an agent if you’re ready to start your buying or selling journey.
Strike feel free
Copyright © Strike Limited 2024
