Well, I was expecting the first quarter of 2022 to be busy, but not this busy!
The residential sales market shows no signs of cooling, likely for the following reasons:
- A significant number of buyers are stuck in rented accommodation, having sold their home last year and are feverishly looking for a new home in a rising market
- Demand still outstrips supply
- The exodus from cities to country living continues
The renovation squeeze
Adding to the above, the cost of renovations rose 61% between January 2021 and January 2022 while good trades people are booked until 2023. So, homeowners needing more space are finding renovating their current home less financially viable as an alternative to moving.
The cost of living has soared which will squeeze us all, untenably so for some. While I’ve heard the odd murmur from buyers and sellers about the impact this will have on the market, they are all still looking to buy and sell. The long-term impact of this squeeze remains unclear.
Despite this, house prices are predicted to grow 7.4% in 2022*
Mortgage view from Jon Stockdale
“Lenders are getting stricter and they are underwriting left right and centre so mortgages are taking longer to process.
“Lenders want to know the ins and outs of a duck’s bottom at the moment and they want it all verified – income, loans, documentation…. So if you’re looking to buy and need a mortgage it’s critical to have said ducks in a row. Lenders like vanilla – they don’t like anything that looks messy.
“I’m hearing about a lot of down-valuations when mortgage valuation surveys are carried out, but I’ve not had any as yet. I do always check out a property online before submitting an application to flag a potential valuation issue, something that’s well worth doing with so many houses going for in excess of asking.”
For mortgage advice you can contact Jon on 07766 755481 / firstname.lastname@example.org
I believe strongly in a responsible approach to house buying and especially borrowing. We can’t predict what will actually happen to house prices over the next year or two, but for now the reality is that house prices are still rising. Those who are looking for a different home and lifestyle are best advised to ensure they are in a proceedable position (under offer, financing approved or cash) so they are in a position to buy the right house when they spot it.
I often speak to people who are not yet on the market and who don’t wish to go on the market until they find the right property, even though it’s highly unlikely their home will sell in time to buy the property they want. If this sounds familiar, click here to read How to Choose A House In One Day.
If you’re planning to sell, do call me for an honest view on the current market value of your home and the best way to market it for a strong outcome.
Founder & Director
Kai Carter Estates
* The Office for Budget Responsibility