New Year New Start…
As we settle into 2023, it is not uncommon for many to resolve ‘New Year, New Start.’
During 2022, we saw increasing volumes of property sales and purchases combined with a significant appreciation in prices followed by a hike in mortgage interest rates towards the end of the year. So the question many are asking themselves is will house prices rise or fall in 2023 and is now the right time to buy?
Unfortunately, there is no definitive answer to this question. It would be logical to assume that with house price inflation, the cost of living at an unprecedented high and interest rates on the rise that something has to give.
Towards the end of 2022 it appeared that lender interest rates were starting to stabilise, however, the recent increase in base rate may see further upward movement. This combined with the cost of living, energy prices and an increasing tax burden, has resulted in the amount of disposable income available to families being squeezed. When income is tight, inevitably the demand for houses on the market begins to drop. This can give rise to a reduction in house price inflation and potentially a depreciation in values.
The position remains particularly difficult for the first-time buyer. The affordability of saving for a deposit while at the same time renting a property is a struggle for many looking to step onto the property ladder for the first time. Where it is possible, it may be worth considering offering up a lesser deposit to get onto the property market so that you start to pay off your own mortgage as opposed to that of your landlord.
As a first-time buyer in the current market, there may be an assumption to put any plans to purchase on hold while you assess the property market. While that may be the right decision for some, equally holding off can cost prospective buyers more in the long run with landlords increasing rental demands and a potential loss of opportunity while house price inflation is stable or depreciating.
As we enter 2023 the age-old question of whether or not to buy remains. Furthermore, uncertainty in the market can give rise to indecision. While we do not have a crystal ball, there are two things upon which we can provide certainty for our clients:
- In the Autumn, Stamp Duty Land Tax was cut despite the rising tax burden overall. From September 2022 first-time buyers have been exempt from Stamp Duty on properties up to a value of £425,000.
- Tollers operates a fixed fee on residential property transactions providing you with the certainty and transparency you need as your transaction progresses.
Not sure of your next step in the property market?… Talk to Tollers on 01604 258558, our experienced Conveyancing team will be happy to help guide you through.
Find out more about our Conveyancing services here.