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Interest Rate Cut

Interest Rate Cut

INTEREST RATE CUT FAST HOUSE BUYERS MARKET

At Home House Buyers we have seen all kinds of trends in the property market and at this moment in time, it is definitely a fast house buyers market. Since the Brexit vote and the buy to let rush has happened buyers have disappeared and vendors have started to panic. With prices getting slashed left right and centre, it’s the market to be buying a property.

Although figures tell a different story with prices across London rose again by 13.6% on the year, in the south and east of England prices also rose by 13 %. The full extent of the adverse effect of the referendum won’t come to light until the figures are released towards the end of September.

A new survey done by a national removals firm has suggested the market will slow further as one in eight pull buyers cancelling their purchase altogether in the wake of the referendum.

The survey also showed vendors wanting to up the pace of their sale to ensure they complete before the government invokes article 50, all in all, there is a lot of panicking going on both the sellers and the buyer sides. One thing is for sure is that if you’re in a good position to buy and are a fast house buyer you’re in the right market.

We are still very unsure how this will translate into house prices. Like every market it’s about supply and demand, if demand falls so will the price of your property, especially if the buyers out there are concerned about a further drop they will be offering lower than asking price.

On the other side of the fence, there is an acute housing shortage within the UK that is indicative to house prices rising at such a level in recent years. If vendors are willing to hold their nerve and they don’t decide to cut prices, this will help property prices and ensure there is a soft landing when it does stabilise.

Economists predict sales will fall by around 10% in the second half of this year and at the same time, property prices will fall by around 5 % which is good news for fast house buyers. They are also predicting growth within the property market to steady to 2.2% in 2017 and is predicting that prices will increase by around £40,000 in five years time according to the Daily Telegraph.
However, the property market in prime central areas of London where prices are double the national average will decrease as far as going int negative figures.
According to a national estate agent, there are already less properties on the market than there were three years ago, with statistics suggesting there are ten buyers for every property on the market, which is good news for seller wanting to hold out for a higher price and not good for fast house buyers.
Halifax has reported a one percent drop last month in house prices after the vote to Leave. The decline has been the third one this year and was offset by the months of April and June. They did say that monthly figures can be erratic and that falls are often followed by an upward trend, it prefers to take its data from a quarterly average rather than a month by month, which it compares to similar periods the year prior.
So if you were comparing last July 2015 to this July 2016, July 2016 would show to be a robust month with prices up 1.6% on the previous year.
There are signs that house prices are slowing with bothe the first two-quarters, outperforming the third quarter but that might be more to do with the buy to let stamp duty rush before the hike on a second property rather than the Brexit vote. There was an increase of activity in transactions in the lead up to the referendum result. Fast house buyers have been busy within the first 2 quarters of this year hopefully, it does continue.
There is an added bonus with the fact the Bank of England introducing a rate cut to 0.25%, which is a record low and should translate into record-low mortgage costs that should help with demand in the near future.
A manager of a renowned London Estate agency has said that although house prices are easing in the post-referendum vote and are proving stickier than many experts had predicted.
We can’t get away from the fact that there is a substantial lack of supply for fast house buyers and this is going to act as a price support post-Brexit and the latest rate cut has further helped the market stabilise with borrowing money becoming even more, cheaper.


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