What’s the mood in today’s housing market? A new ‘State of the Property Nation’ report1 noted growing eagerness among would-be buyers, with nervousness about the economy causing sellers to hold their fire. The subsequent COVID-19 outbreak will no doubt have an impact.
Finding the right property at the right price has always been challenging for buyers, but the good news is that the number of househunters feeling frustrated by these difficulties has fallen five percentage points in the past year. Meanwhile, nearly a third (32%) of active property seekers say they are more serious about moving than ever.
The sentiment gap is growing, however. It appears that sellers are less convinced by the so-called ‘Boris bounce’ than buyers and remain wary of ongoing economic instability. They’re particularly worried about not achieving their asking price, with 31% of aspiring sellers concerned that buyers won’t be willing to pay what they feel their property is worth.
Are prospective sellers justified in feeling so anxious? Well, perhaps not. Experts predict modest house price growth this year, with Savills2 and Rightmove3 predicting 1% and 2% growth, respectively.
Looking further ahead, Savills forecast a more significant cumulative rise in house prices of 15% over the next five years – although the estate agent expects some significant regional differences. While the true impact of Brexit remains uncertain during the 2020 transition period, research suggests that three-quarters of Britons overestimate the negative impact the whole Brexit process has had on house prices4.
Whether you’re buying, selling, or both, property transactions can be daunting, so it’s little wonder that many remain cautious. That’s where we come in. We can assess your financial situation; help you find the right mortgage deal for your circumstances and offer professional advice to ease your doubts. Just get in touch.
1Zoopla, 2020, 2Savills, 2020, 3Rightmove, 2020, 4Good Move, 2019
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Income protection (with no investment link) has no cash in value at any time and will cease at the end of the term. If you stop paying premiums your cover may end.