Property Market Update in October 2023

The latest statistics and trends in the UK housing market reveal a state of flux, with clear signs of price drops, a cooling of demand, and an uptick in supply. Here’s a breakdown of the present state of affairs:

Nationwide reports that the average house price in the UK experienced a 5.3% decrease in the 12 months leading to August 2023, marking the first annual decline since 2009.

Simultaneously, the number of potential buyers registering with estate agents has seen a downward trend. The escalating cost of living crisis is believed to be a key factor in limiting the ability of many to purchase homes.

A rise in mortgage rates, spurred by the Bank of England’s efforts to fight inflation, has further dampened the demand for homes.

However, the number of properties available for sale is on the rise, as some homeowners are attempting to capitalise on the current market situation.

Despite falling prices, declining demand, and the increase in mortgage rates, opportunities remain for both buyers and sellers. Prospective buyers might have the upper hand in negotiating a lower price, while sellers may be able to expedite the sale of their properties.

For those navigating the current property market, here are some valuable tips:

Buyers:

1. Conduct thorough market research and understand the value of your desired property.
2. Be open to negotiating prices as sellers are more likely to be accommodating in a declining market.
3. Ensure your mortgage is pre-approved before initiating a property search.

Sellers:

1. Be pragmatic about your property’s price in a market experiencing a downturn.
2. Ensure your property is well-presented, clean, and with a well-maintained garden.
3. Aim to sell your property swiftly to minimise the impact of falling prices.

In the present market scenario, consulting us at Buckingham James as a qualified mortgage broker is highly recommended for both buyers and sellers. We can provide clarity on available options and help secure the most suitable arrangements.

Further tips include considering less popular areas for purchasing properties where prices are typically lower. Flexibility on your move-in date could also provide room for negotiation. Additionally, properties needing renovation, also known as fixer-uppers, could be an affordable way to enter the property market. However, keep in mind to account for the cost of necessary repairs and renovations in your budget.

The UK property market is continually evolving and complex. However, adhering to these tips could heighten your chances of achieving success in the prevailing market conditions.