We have delayed doing an update until we knew what was happening in the property market.  Now the new Chancellor has made a U-Turn in most of the changes made in the mini budget a few weeks ago, this seems as good a time as any to send you our thoughts. (And since we wrote this the PM has resigned!)

As you will already know, any changes within the government always affect property in one way or another.  This latest run of changes has affected mortgages.  A lot of products were pulled from the market with only a day’s notice, some did not even give any notice, which in turn left a lot of buyers not knowing what that meant in terms of their purchases.  Within a matter of days, products started coming back onto the market but at much higher interest rates, and some products still have not returned.  All of which has had a knock-on effect on offers placed/accepted etc.  It has been a very long couple of weeks for all estate agents and mortgage brokers across the country!

What we are seeing now is that things are slowly calming, however, these changes in mortgages mean this is now affecting property prices.  Prices are predicted to fall over the coming months, but if we stop, take a breath and think about that for a moment, we will realise that was always inevitable.  The high, post-pandemic price bubble had to burst at some point, it was unsustainable as it was, and only a matter of time before it burst. It would seem that time is now.  

So what does this mean to you?

Prices of property coming onto the market now are appearing to be at a more realistic level.  It is no longer a “Sellers Market”, but is heading back to the pre-pandemic “Buyers Market”. This means buyers are negotiating more when placing an offer, and prices are no longer going over the asking price as much as they have done over the past two years.

What should you do?

If your property has been on the market for a little while, then now could be the right time to look at a price reduction.  There are still plenty of buyers out there, but their budgets have just been cut thanks to rising interest and mortgage rates and the rising cost of living, so they can no longer afford to offer high prices.  

It is time to be realistic, and no longer expect offers over the asking price, but to think carefully about any offers placed on your property and talk to your agent to decide if an offer placed could work for you and your onward plans.

First Time Buyers are the hardest hit, so if your property falls into their price bracket be mindful of this.  The industry needs First Time Buyers, they are at the bottom of the chain, and without them, the market cannot move forwards.

There is no doubt this is going to be a long and tricky winter, but it is worth remembering the following.  People will still need to buy and sell a property.  No matter what the reason, there will always be houses that have to be sold and people who will need to move.  It’s just a matter of working closely with your agent to market your property at a price to sell and secure your buyer. Contact Us if you wish to discuss your property needs.

Mortgages

If you need a mortgage please ask to talk to our mortgage broker.  It is always advisable to compare mortgage rates and offers.

All lenders will have different criteria.  Just because one has said no does not mean you can’t get a mortgage, it just means you need to speak to a broker so they can check with as many lenders as possible.

Please contact us, or call us on 01239 562 500 to let us know if you would like a chat with them, and we will ask them to call you to see how they can help.

Land Transaction Tax Changes

Land Transaction Tax (LTT) in Wales has changed, and the threshold of where LTT begins has increased, so there is no LTT to pay on properties up to the value of £225,000.  

After that, the percentage to be paid for each tier has changed and increased.  

Our website has been updated to show the new rates, and also how this would affect anyone buying a second property.

For full details of the new tiers and percentages please click HERE