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21st June 2018
2018 is well and truly underway, but there’s been little certainty in the property market. From the abolition of Stamp Duty for first time buyers, to the impending Brexit and fluctuating house prices, we’ve seen a ‘watch and wait’ approach adopted by many. But is it all for a good cause?
With the average property ownership between seven and eight years, you may have received higher valuations for your home in the recent past - but not so much in the current climate. With price fluctuations across the entire housing market (May saw house prices rise by 1.5% following a 3.1% dip), your ideal house is still within reach, you may just be selling and buying for a little less. A realistic, competitive valuation will serve you well with the current high demand for property allowing you to move quickly, while still being able to afford your next home.
Over 1.2 million second steppers considered moving but didn’t in the last two years. Of those, over 50% found their current homes too small for their needs. This ‘watch and wait’ attitude is a major contributor to market stagnation, which sees house prices rise unrealistically and availability reduce dramatically. The best thing we can do? Keep moving. With an influx of new buyers available thanks to changes in Stamp Duty, homeowners at all levels of the ladder can move onto their next big adventure, all the while allowing first time buyers access to the market.
Mortgage rates have been at an all-time low, but with the Bank of England expected to increase base interest rates from 0.5% to 0.75%, it’s likely mortgage rates will edge up too. This shouldn’t be a worry though, as rates are currently at a historical low. A more promising trend is the news that mortgage approvals increased by 6.4% from April to May, a good sign for first-time buyers.
Don’t let the market dictate finding your perfect home. Instead, put stock in a solid, realistic valuation and act. Whether you’re a second-stepper seller, first-time buyer or are considering downsizing, our honest, friendly team can give you all the advice you need when buying or selling in Brighton & Hove.