Have interest rate rises affected house prices?
The seventh consecutive base rate rise, this time by 0.5% to 2.25%, will no doubt be in the minds of many home-movers. It’s likely that the impact of these rises will gradually filter through during the rest of the year, but at the moment they’re not having a serious impact on the number of people wanting to move. There’s still strong buyer demand and a lack of stock available, which is keeping house prices high.***
Will the cost of living cause house prices to fall?
It may feel surprising that sales market activity is not weakening faster, given increases in the cost of living, rising interests and a drop in UK consumer confidence. Rising inflation and the rising cost of living are hitting those on lower incomes first and will take longer to impact higher income households.
Low supply of rental properties as landlords exit the buy-to-let market
There’s also research to suggest that landlords are leaving the buy-to-let market. Research suggests that the attraction of the private rental sector is waning*** due to an increase in regulation and rules, thus reducing the supply of much needed private rental homes. Tax hikes in recent years, including the extra 3% stamp duty surcharge on second homes and the changes to mortgage relief are driving away many landlords. If you are considering becoming a landlord, the thinning private rental sector means there’s high tenant demand but not many properties. This could be a great opportunity, if you know what your property could rent out for…
Landlords put greater focus on energy efficiency in their investments
If the new EPC proposals go through, the minimum ratings for EPCs will rise from an E to a C rating by 2025. Investors are adapting their current investments to help to counteract the hike in the cost of living. Investors are also looking to make improvements to their properties – solar panels and draught proofing in order to increase property values. If you’d like to learn more about how to save money and how to make your property more energy efficient, head here.
New rules in place from 1st October regarding mandatory smoke and carbon monoxide alarms
There are just a few weeks left before landlords – or their agents – must meet the mandatory requirement of fitting smoke and carbon monoxide alarms to their rented properties. The rules state that all rental homes in England must provide a carbon monoxide detector in rooms used as living accommodation where there is a fixed combustion appliance, such as gas heaters and boilers, by 1st October. This is also the case for fireplaces and log burners.
So, is now a good time to sell?
Something for you to factor in is when you would like to sell up and move. Remember that conveyancing can be a lengthy process and means sellers need to come to market soon if they want to move early in the new year. We are currently still seeing a continued surge in the volume of new buyers looking to purchase the limited housing stock available, and so we would encourage anyone thinking of selling to take advantage of this key window of opportunity, now.