Market Update - Winter 2022/23
At the time of writing this newsletter article Rishi Sunak has just been appointed the latest Conservative Party Leader and Prime Minister, which will hopefully bring more political certainty and in turn more confidence and further strengthen the housing market. The mid term budget at the end of September led to further increases in interest rates which together with various cost of living issues has had a dampening effect on demand for purchasing a new property. However, we are pleased to report there still remains a good level of new instructions to sell properties and viewing levels are healthy which is a trend which with more stability in the economy and political landscape will hopefully continue as we approach the end of 2022.
Mortgage rate increases seem to have eased which will hopefully reduce the chance of further rate increases as we believe lenders have already built in the expected increase in the bank base rate in November into their pricing modules. It seems the one thing that has not been changed from the mini budget is the uplift in the stamp duty threshold which remains in place and means that up to £250,000 no buyer has to pay any stamp duty – saving £2,500 at this level of purchase price. We are still seeing good activity from first time buyers who want to come out of the rental market, or move out of their family home with there being excellent sales activity in the £250,000 – £300,000 price range from first time and other buyers.
We do not anticipate a crash in the property prices as forecast by some pundits who say prices may drop by over 20% as if there is a down turn people will simply not sell their homes and will wait for an improvement in the market. However, what we are doing is working with property owners who are currently selling to realign their asking prices so they are looking more attractive as in hindsight their properties were probably placed on the market at a too higher figure than they should have been.
If you are thinking of moving home, have a property to sell or are looking to purchase your first home, please contact one of the Robert Ellis offices and we would be only too pleased to let you know what is currently happening in the Nottingham and Derbyshire property market place.