Inflation - What Property Buyers & Sellers Need To Know:
Anybody who keeps an eye on the news will no doubt have read or heard that inflation is fast becoming the next big problem that the Government are having to contend with.
From buying your groceries to filling up your car with petrol, inflation could affect all of us, but will it affect those looking to buy or sell a property - And if so, will it be good or bad news for the housing market?
This blog will try and explain what could happen over the coming weeks and months;
The housing market has defied all odds, over the last eighteen months or so and despite pandemics and other world wide problems, has gone from strength to strength. Resilience has been to some extent, a huge saving grace to the UK economy. Furlough and stamp duty holidays clearly helped to bolster demand and the lowest interest rates on record have maintained house price growth more recently.
However, with rising inflation, quite often the first thing a Government would look to do is raise interest rates as this usually kerbs people spending and therefore see's inflation levels steady.
Many economists and Government advisors are predicting that this could well happen in the coming weeks and for the first time in a while, people are now starting to question whether this will now cool what has been a booming housing market.
So, for those considering a move in the new year, what should you do?
For most families, there is never a perfect tme to buy and sell a house, so it really should come down to doing what you individually can afford and are comfortable with. If there is a need to move and the figures work for you then now is a perfectly fine time to move. You will be able to secure advice from expert mortgage brokers on any loan required that will give you a fixed rate mortgage for two, three or five years which should see you past any period of potential rate rises and we always advise looking at a move over the longer term anyway.
What do we mean on this? If you are moving your family, you will presumably be looking to stay at your new home for a period greater than three to five years. By this time what are potential problems with the wider economy now will have long since been and gone by the time you look to move again. House prices may (or may not) cool in the short term but they always rise over a longer period - whatever happens.
In conclusion, our advice is this - If you have the want and need to make a move and have taken any required financial advice then go for it!
Our expert teams at our Rayleigh and Rochford offices are always on hand to offer any help or advice you may need.
Until next time,